Data from Tyl by NatWest, an SME payments provider, has shown SME’s transaction values increased by £7.85 on average since the new £100 contactless limit came into effect on October 15th.
Analysing data by key seasonal sectors, those in the floristry industry benefited from an average transaction value rise of £19 from £31 to £50. The clothing retail industry saw an average value rise of £6 from £80 to £86 per transaction.
The findings, based on data looking at the first month of payments across Tyl’s SME customers since the limit increase, indicate it has been helpful in encouraging greater consumer spending with small businesses via digital payments.
Ahead of the crucial festive retail season, the rise is seen as a welcome boost to business, particularly to small independent traders looking to make up for lost earnings over the course of the year and concerned about the ongoing impact of Covid-19.
Commenting on the findings, Mike Elliff, CEO, Tyl by NatWest said: “With businesses expressing fresh concerns over Covid-19 ahead of the crucial festive period, we must remain committed to supporting SMEs as a central focus of our economic resilience against the pandemic.
“Measures such as the new £100 contactless limit have been heavily welcomed by our customers and we know that Tyl, along with the wider payment industry, has a clear role to play in helping the country’s small business sector to recover and rebuild for the future. With in-person footfall levels yet to return to their pre-Covid high, adopting digital payments is increasingly looking like a vital tool as SMEs navigate the festive trading season.”
“The run-up to Christmas is traditionally filled with parties, meals out and last-minute shopping trips. Although this year’s festive season might look slightly different, we’re calling on everybody to show their support by shopping with their local independent stores.”
While the true impact of the new limit will take time to emerge, the ongoing effects of the pandemic are continuing to shift consumer payment preferences towards digital methods. Following the new £100 limit, Tyl by NatWest is encouraging business customers to stay vigilant with their fraud prevention systems to protect consumers from greater potential exposure to criminal activity. Paying particular attention to unusually large orders, multiple cards in use by one customer, multiple declined purchases from the same customer, suspicious telephone calls and irregularities in key information such as email addresses with obvious differences to the customer’s name are all important measures advised.
Tyl by NatWest is an innovative payments service designed in partnership with UK SMEs to make it easier for small business customers across the country to receive payments in-store, online and over the phone. Tyl offers next-day settlement for users, helping businesses to manage cash flow during Covid-19 and beyond.