A Brussels crackdown on contactless payments could cause mass confusion for millions of customers and trigger a €57bn (£48bn) hit to businesses across Europe, experts have warned.
The new Strong Customer Authentication (SCA) rules require banks to verify a customer’s identity every time they make payments totalling €100 (£85).
It means that if customers breach this limit through repeated contactless card payments, they will be forced to type their pin into a machine.
There are fears that the changes – which have already been introduced by Britain’s biggest banks – will baffle customers, meaning many walk away rather than paying.
A report published by 451 Research that was commissioned by payments company Stripe estimated that €57bn of payments across the European Union will be abandoned as a result of the extra checks.
Sarah Kocianski, the head of research at financial technology consultancy 11:FS,