The spending limit on contactless payment transactions has risen to £30 from September 1. Previously, contactless spending was limited to £20 per transaction.

However, the threshold increase is not automatic. Retailers will need to update the software on their terminals to allow for the change.

As the new limit came into force the UK Cards Association, the trade body for the cards payment industry, said more than £2.5bn was spent using contactless cards in the first half of 2015.

Contactless spending has risen from £287m per month in January 2015 to £567m in June 2015. In total, £2.5bn was spent on contactless cards and devices in the first half of 2015, compared with £2.32bn for the whole of 2014.

Graham Peacop, CEO of The UK Cards Association, said: “Contactless payments are fast, easy and secure. With more contactless cards in wallets than ever before and a growing number of retailers accepting contactless payments, we have seen a huge rise in the number of payments being made.

“The growth in contactless payments shows people want to use contactless cards and increasing the limit gives customers even more opportunities to pay in this way.”

Click here for UK Cards Association guidance for retailers about contactless payments.