Fashion retailers in the UK will be one of the main beneficiaries from the increase in contactless card payment limits from £20 to £30 today (September 1), according to Visa Europe.
Sales between £20 and £30 represent 18% of all clothing sales in the UK, equivalent to £4m per day.
Visa Europe’s director of retail engagement Natasha Toothill said the limit increase has “huge potential” for fashion retailers.
“For fashion stores it is all about cutting queues and increasing customer satisfaction at the checkout. Contactless is seven seconds faster than all other forms of payment so retailers need to invest in adapting their systems to reap the benefit if they haven’t already done so.”
Toothill said upping the limit to £30 will see a real “step change” in the importance of contactless payment, especially in attracting millennial shoppers.
“The average basket value for the millennial customer in the UK is around the £30 mark so contactless payment will soar among these shoppers. It is also seen as a stepping stone for mobile payment so retailers need to keep up with this type of changing customer behaviour.”
Currently, 75% of Visa card transactions are £30 and under.
WGSN’s InStock service shows that 62% of full-priced clothing, footwear and accessories across womenswear, menswear and kidswear in the UK is priced below £30.