Sheffield shoppers will now notice a big difference to contactless payments at supermarkets

The new limit has increased by £15 to £45 as part of measures to combat the spread of coronavirus.

Trade association UK Finance, which represents the finance and payments industry, said the decision to raise the limit was made following talks with the retail sector. It follows similar increases recently made elsewhere in Europe.

The British Retail Consortium (BRC) said the move will reduce the need for physical contact with devices where people need to input their Pin. Increasing the limit will also mean more transactions can be made without handling cash.

The BRC said the new contactless limit will be operational at some stores across the UK from April 1, but may take some time before it can be applied more widely, including to those retailers currently operating at peak capacity.

BRC head of payments policy, Andrew Cregan, said: "Some shops will take longer to make the necessary changes, given the strain they're under. In the meantime, most customers can continue to make contactless payments for higher amounts using their smart phone."

Allowing people to "tap and go" on higher value card transactions may also spark concerns about fraud. But, according to UK Finance, contactless fraud equates to just 2.5p in every £100 spent using contactless technology.

UK Finance said contactless fraud on payment cards and devices represents just 3.3% of overall card fraud losses.