Contactless payments have seen a steep rise in usage according to charities and business in the UK, making it the fastest-growing payment method in the UK and worldwide. They now account for more than 40% of all UK payments, a significant increase from less than 10% just four years ago.
In this article, we will dive into the history and workings of contactless payments and explore how they can be used for charitable donations and fundraising.
What are Contactless Payments?
Contactless payments, also known as ‘tap and go’ payments, use radio frequency identification (RFID) and near-field communication (NFC) technology to complete transactions. The payment terminal creates a small field in the air around itself that reads the information on your card, triggering the payment without the need for physical contact or entering your PIN.
Are Contactless Payments Secure?
These payments are as secure as traditional chip and PIN payments. Safety measures such as NFC size and encryption prevent unauthorised access to card information. The field around the payment device is only a few centimetres wide, making it difficult for fraudsters to get close enough to your card. Additionally, cards with chips are challenging to clone and generate a unique code for each transaction, which is verified by the acquiring bank. The transaction limit for contactless payments also protects against fraud, as any purchases above the set limit require a PIN.
History of Contactless Payments in the UK
The first contactless card payments were introduced in the UK back in 2007, with initial limit of £10. In 2010, the limit was raised to £15, and in 2012, it was increased to £20. The COVID-19 pandemic has caused a surge in demand for contactless payments, which now total over 169 million transactions as of October 2021.
The current limit for contactless payments in the UK now stands £100, with no daily or monthly limit.
How Long do Contactless Payments Take to Process?
The time it takes to process these payments varies depending on the company processing them and the payment terminal’s configuration.
On average, it takes 2-4 days. Some payment merchants even allow instant availability of funds transferred into your bank account the very next day. Although for consumers, the transactions are essentially instant.
Why are Contactless Payments Popular?
The shift away from cash and towards digital payments has been a global trend for several years, and contactless payments are no exception. The quick, efficient, and safe nature of contactless payments makes them highly attractive to consumers and merchants.
Transactions can be completed in just 15 seconds, and there is no need to handle cash. Contactless payments also offer increased security compared to magnetic strip cards and can help improve customer service by making payments quicker and more efficient.
Contactless payments and donations for charities and holy places
If you are looking to raise funds for a charity, school, religious institution, or organisation, Hibabox can help. Our lightweight and portable contactless card reader devices simplify the donation process, removing the need to handle cash.
Contactless payments also tend to increase donation values, with an average donation of £10. Hibabox devices are secure and fully certified. We partner with Sumup, a popular UK payment merchant, to provide a secure payment gateway and supports all major payment methods and can be used for phone or in-person donations.
To learn more, visit www.hibabox.com or contact the sales team at sales@hibabox.com to request a brochure.
In conclusion, contactless payments are becoming the fastest-growing payment method in the UK, offering a quick, secure, and efficient way to complete transactions. With no need to handle cash or enter a PIN, cit is a convenient for both consumers and merchants.
