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Near Field Communication and all contactless technology

The UK has increased the amount at which consumers merely need to tap to pay without entering a PIN code from £10 (US$15.08) to £15 (US$22.63).

That remains below comparable purchase limits in North America and Europe for contactless and probably just barely covers a typical meal in some of the quick-service restaurants and other establishments in London where banks are targeting contactless, among other places.

Even given this and the fact the British pound continues to fall in value, the higher contactless ceiling is significant. Among those leading the cheers yesterday for the announcement was Barclays bank, whose hopes for contactless and NFC payment continue to rise.

“More than two years after the first customers were issued with contactless cards, it is the right time for the industry limit to increase to £15, in line with demand from consumers and retailers,” Brian Cunnington, head of debit cards for Barclays, said in a statement.

Barclays and its credit card issuing and acquiring arm Barclaycard want to make contactless more convenient as they continue to roll out cards and terminals and gear up for a commercial launch of NFC service with telco partner Orange UK.

Barclaycard and its parent have together issued 6 million contactless credit and debit cards since leading the contactless-payment launch in the UK in September 2007. That’s the lion’s share of contactless cards on issue in the UK. And the bank no doubt has footed the bill for most of the 20,000 contactless point-of-sale terminals it says are deployed in the UK, concentrated in London at small retail chains and independent merchant locations. The big chains, which are responsible for their own terminals, have yet to embrace contactless, however.

The contactless-transaction limit had probably been set low in the UK because of security concerns. Raising it could enable British consumers to avoid inserting their cards into terminals and punching in their PINs on more transactions.