Contactless payments could raise to £100

The limit on contactless payments could rise to £100. This follows a raise in the limit last April, when the limit was increased from £30 to £45.

Since the beginning of the coronavirus pandemic, larger amounts have been spent using contactless payments, either using cards or devices or smartphones.

The Financial Conduct Authority (FCA) said, “Since the limit for contactless card payments was raised to £45 last April at the start of the pandemic, people are increasingly making use of contactless payments.

“It’s important that payments regulation keeps pace with consumer and merchant expectations.

“Recognising changing behaviour in how people pay, as part of a wider consultation, we will shortly be seeking views on amending our rules to allow for a possible increase in the contactless limit to £100.”

A UK Finance spokesperson said, “Contactless payments are increasingly popular, with many customers taking advantage of the higher £45 spending limit introduced by the banking and finance industry last year.

“The industry believes that a more flexible approach could be merited in future, which takes into account consumer demand, fraud prevention, security and convenience. UK Finance looks forward to seeing more details from the FCA on its proposals and will respond to its wider consultation on this issue in due course.

“Contactless is one of a range of payment methods and the industry will also continue to work closely with the regulator to ensure that customers can pay in a way that suits them.”

UK Finance’s latest card spending data including contactless transactions can be found here.