The threshold for contactless payment in the UK has been raised, and Bitcoin is expected to become a new option

     Payment methods have shifted from cash payments to contactless payments as customers want to avoid as much hassle as possible during the payment process.

Contactless payments are developing rapidly in various countries. In the UK, the transaction threshold for contactless payment transactions has been increased by 50%.

As a result of these changes, merchants who want to use this payment system will need to put in place additional infrastructure.

Not all payment terminals are automatically compatible with the new restrictions

     In the UK, credit card payment terminals are very common, and every year, fewer and fewer customers use cash to pay. Credit card payment seems to make a lot of sense to simplify payment, but it would be even more convenient if you don't have to show your bank card to the cashier. Therefore, contactless payment methods came into being and have become a mainstream payment method in the UK.

     People are calling for the minimum transaction amount for contactless payments to be increased from £20 to £30, while the average transaction amount in supermarkets is £25.

     By setting the minimum above the average spend, customers are forced to pay with a "standard" bank card. The new minimum is effective immediately and should be in place in most retail stores by now.

     However, whether the new minimum limit will be implemented depends on the software installed on the payment terminal. According to the British Credit Card Association, some payment terminals may not be updated immediately to support the new minimum payment limit, and it will take several weeks to complete the update. There is no doubt that delayed updates will cause a lot of inconvenience to customers and merchants.

     It has taken a long time for the UK to implement the policy of increasing the minimum limit for contactless payments to £30, which was proposed in February 2015 but has only now been implemented.

     The decision to raise the threshold comes days after a surge in contactless payments - thanks in part to Apple Pay and Barclays' bPay service.

     The biggest concern about raising the minimum payment threshold for contactless payments is whether it will lead to an increase in fraud. To date, fraud cases are still "extremely rare" and less than a drop in the ocean. UKCA is confident that fraud cases in contactless payments will remain low in the future.

Bitcoin payment without transaction fee is a better choice

     Contactless payments are not a new technology; Bitcoin has offered this feature for a long time. Bitcoin users do not need to go through the cumbersome process of processing payment details when paying, whether in-store or online. Simply by scanning an automatically generated QR code with the camera on their mobile device, users can complete the transaction.

Some mobile Bitcoin wallet providers, such as AirBitz, have integrated NFC and Bluetooth payments for several months.

As a merchant, the biggest benefit of introducing Bitcoin payment is that there is no need to purchase additional infrastructure. In addition, Bitcoin transactions only require a small transaction fee, and the transaction amount can be deposited into the merchant's bank account in the form of local legal currency the next day.

     To date, there are still very few merchants that accept Bitcoin payments. Bitcoin providers need to work harder to educate people about Bitcoin and let the world know the advantages of Bitcoin payments over bank card payments and contactless payments. But one thing is certain: payment technology is developing rapidly, and cash transactions will become obsolete sooner or later.