Contactless card users will see their spending limit rise to £30 per transaction later this year as the popularity of the technology grows.
The current limit of £20 per transaction will increase by £10 in September, the UK Cards Association announced, following an exponential rise in the use of contactless payments.
The volume of transactions using contactless cards rose threefold during 2014 compared to the previous year, reaching 319 million.
The value of transactions almost quadrupled during the same period, exceeding £2.3 billion in 2014 compared to around £650 million the year before.
Speed and convenience have been the driving factors behind the increased use of the technology. Consumers make payments simply by touching the card on a payment terminal.
This has been of particular value to busy London commuters and retailers, who are able to save vital minutes that would otherwise be spent fumbling over cash or entering PIN numbers.
Since September, commuters have also been able to use contactless payments on London buses or on the tube, with TFL imposing the same daily caps on contactless card use as with standard Oyster cards.
Figures show that contactless payments were used over 40 million times on public transport in the final four months of the year. This has prompted other major cities to consider enabling the technology.
Barclaycard, which routinely integrates the technology into its new debit and credit cards, said that almost a third of all transactions in London below the current limit of £20 had been made by contactless cards.
The technology is also proving popular elsewhere. Over a quarter of small transactions in Leeds were made by contactless payments, the provider revealed.
The UK Cards Association said the decision to increase the limit reflected how contactless had ‘firmly slipped into the mainstream’.
“With usage soaring every month last year, we’ve seen people flocking to contactless payments as they switch away from cash,” said Richard Koch, the Association’s Head of Policy.