All British retailers will have to offer the tap-and-go system by the year 2020, a move that will likely see the end of £5 minimum spend rules.
Shops will continue to accept regular card payments but under new rules introduced by Visa and Mastercard it will become compulsory for shopkeepers to provide a contactless payment method within the next five years.
The MailOnline reports:
Independent retailers and cornershops often have a £5 minimum spend policy on debit and credit card transactions to cover the charges imposed by banks for processing the payments.
But the ease of contactless payments means that retailers are charged significantly less for transactions involving touch-and-go cards.
It is thought that the widespread introduction of contactless payment terminals will prompt many shopkeepers to get rid of the minimum charge requirement.
Richard Koch, of the UK Cards Association, industry body, said: ‘The compulsory introduction of tap and go payments in 2020 will discourage retailers from imposing a £5 minimum spend on card payments.
‘Pubs and convenience stores especially are less likely impose a minimum spend on contactless payments is because it helps them cut queuing time and make more sales.’
As more and more people switch to contactless for making small purchases, banks are having to reduce the charge for each transaction.
Contactless payment is increasingly popular, with more than £2bn spent using the system last year.
From September, the maximum contactless daily spend will rise from £20 to £30.
Niamh Harris