Digital Wallets Are Paving The Way
In a lot of ways, the online world has been navigating security challenges. Digital wallets, which range from Apple Pay to Google Pay and even PayPal, have found new ways to facilitate sending payments safely with built-in protections in place.
Most online retail platforms now accept digital wallets. Even gaming platforms offer online slots use digital wallets as a way to keep online experiences secure. Built-in security measures, like two-factor authentication and verification, mean that people can deposit money and play popular games like Bass Cash Deluxe without unnecessary PINs.
The FCA has come out to say that they do plan to allow bigger contactless payments, as long as issuers have monitoring systems in place to assess how risky the payment is.
Retailers have come out to say that they don’t see a real reason to change the current contactless limit, and that there are concerns that higher limits could create additional security concerns.
With that said, removing the limit for contactless payments would give consumers way more flexibility in their everyday payments. It would also make it easier to tap and go when making high-value purchases. This could all be done without entering a PIN.
Taking inspiration from the online world is one of the best ways to navigate real-world concerns here, especially as technology becomes more advanced and security measures become easier to implement at scale.
The Pros Outweigh The Cons
The change could unlock a number of very exciting opportunities for the sector. While a change could well require some upgrades, especially to point-of-sale terminals, the FCA has strong beliefs that the benefits over the long term outweigh the costs quite significantly.
According to the regulator, added flexibility with making payments could not only drive innovation, but also support growth and modernise the way that people make payments. It would also make sure that providers are doing their bit to maintain the robust security standards that need to be upheld.
As time goes on, people will be able to take advantage of stronger protection, which could include refunds for fraudulent activity.
While we shouldn’t expect any immediate changes, it’s safe to say that scrapping contactless limitations would provide way more convenience to customers, and it would also make it easier for people to make the purchases they want, freely.
This would reflect the online world, and it would also offer additional protections, especially if the right measures were put into place to offer consumers the same protection. Even though it may be quite some time before the contactless card limitation is scrapped, it’s certainly a positive step forward for the financial sector and for retailers who sell expensive or luxury items that are higher than the current contactless limit.