From January 1, 20201 the maximum threshold for contactless payments will be increased to 50 euros. Here's what will change for users
Important news for contactless payments: from January 1, 2021 the threshold will be increased up to a maximum of 50 euros, compared to the 25 euros provided so far. This is a decision communicated directly by Visa, Mastercard and Bancomat and which follows the ECB's indications regarding digital payments. The European body had called for an increase in the minimum threshold in order to make people's lives easier and also comply with the rules to prevent the spread of the virus.
In recent months, in fact, contactless payments have seen their importance and use grow, but the threshold of 25 euros is limiting. With the increase to 50 euros, the use of this system to pay for groceries, or dinner at a restaurant, will grow enormously. What will change in everyday life for citizens? Quite simply, they will no longer have to enter their PIN for payments made by credit card or hi-tech devices up to a maximum of 50 euros. It will be enough to bring the card or the smartphone close to the POS to make the payment.
Contactless payments, limit to 50 euros: what changes for citizens
From January 1, 2021 it will no longer be necessary to enter the PIN of the credit card for all payments below 50 euros. The new limit has been set by Visa, Mastercard and Bancomat and will allow citizens to simplify spending in everyday life. The decision was taken after the solicitation of the ECB that came during the outbreak of the pandemic. Some European countries have already accepted it and Italy will do so from the beginning of next year. What will it mean for citizens? No change, except for an additional service that can be used in everyday life.
Remember that to take advantage of contactless payments you must have a credit card enabled with the integrated chip. Otherwise, you won't be able to take advantage of this benefit.
As for banks and merchants, in the coming months they will have to equip themselves with ad hoc tools and processes to adapt to the new threshold. Most likely, a software update from the company providing the POS will suffice.