Contactless payment limit with no PIN is doubled

The National Bank of Poland increased the limit of contactless transactions to PLN 100.

The changes will come into force in the second quarter of next year.

The change is seen as a response to the needs and expectations of Poles who are keen users of contactless technology. According to POLASIK Research, in 2017 the median value of contactless payment surpassed the limit of PLN 50, and the volume of transactions was three times higher than in 2010.

Payments giant Mastercard says that the majority- over 66 percent of transactions- are still being paid using contactless cards. If the amount is higher than PLN50 the customer is prompted to enter their PIN code. The new regulations will allow for more effective and time efficient transactions.

Mastercard announced today that it has the green light from Poland’s National Bank (NBP) to up its limit.

Visa also intends to increase the limit of contactless payment without PIN code authorisation. Jakub Kiwior Visa’s Managing Director for Poland and Hungary said, while adding that the company is also “consulting with market agents such as banks, in order to find a common stance that takes into consideration the changes stemming from the PSD2 directive”.

PSD 2 is a European Parliament directive issued in November 2015 pertaining to the security of the payment services. The directive was to be implemented by all member states on January, 13, 2018 at the latest.

At the time of its introduction, in 2007 the limit for contactless transactions was set at PLN 50. However things have changed since then. Within the last 10 years the cumulative increase in GDP per person amounted to 49 percent.

However, though average earnings of Polish people have increased, it is worth remembering that inflation has eroded the zloty’s purchasing power by 21.6 percent. In other words a set of products which 10 years ago was priced at PLN 100 , today would cost PLN 120.

As a result the maximum amount of PLN 50 set back in 2007 is no longer realistic.

In comparison with other European countries, Poland’s transaction limit is one of the lowest. In comparison, the transaction limit in the UK is GBP30, roughly around PLN145, and in France and Ireland it oscillates around EUR30 (PLN130).