Barclays introduced the first card with contactless technology in 2007.

The maximum limit for contactless card transactions in the UK is increasing from £10 to £15, and Barclays which has been the industry leader for the technology says it is “undoubtedly the future of payments.”

Banks and card providers agreed to raise the £10 limit, which would bring the UK more in line with European limits – up to €25 (£22.60).

Consumers using contactless cards can use them in over 23,000 outlets in the UK including branches of Pret A Manger, Coffee Republic, Caffe Nero and Krispy Kreme, as well as many independent retailers. This list is continuing to expand as retailers reap the benefits of contactless terminals, which include its speed and convenience. 

Brian Cunnington, Head of Debit Cards for Barclays, commented on the change: “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 alike.

“The new higher limit gives customers the flexibility of paying for even more transactions quickly, securely and conveniently via a contactless card payment and will lead to more retailers implementing the technology.”

The UK Cards Association said that at the end of January around 7.8 million payment cards had been issued with contactless technology, and it expects this figure to rise to around 12 million by the middle of 2010. 

The list of banking organisations which have issued contactless cards is growing. Customers of Citigroup, HSBC, MBNA, Halifax, Newcastle Building Society, Natwest and RBS have all made the technology available, while Co-operative Bank are investigating potential opportunities and are considering a trial in late 2010.