This is the second rise in the limit since last spring, when it went up from £30.
The Government said the change had been made possible after Brexit as the Government is no longer bound by EU rules on the maximum limit for contactless payments, currently set at £45.
It is hoped that as lockdown eases and people return to the high street, the contactless limit increase will make it easier for people to pay for their shopping.
However, the report warns that the announcement could further accelerate the decline of physical cash use, with banknotes and coins already in decline due to the pandemic. The Government has pledged to legislate to protect the future of cash.
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