Contactless payment limits could be increased beyond £ 100 and even become unlimited under the last consultation of the Financial Conduct Authority (FCA).
According to the last announcement of the finance regulator, card suppliers could set their own expenditure limits for unique contactless payments. The functionality was introduced for the first time in 2007 with an expenditure limit of £ 10 for individual payments. The limit gradually increased over time, going from £ 30 to £ 45 in 2020 during the first stages of the pandemic, and reached £ 100 in 2021.
In a Letter to the Prime Minister In January, describing a wide range of possible measures, the Financial Conduct Authority (FCA) first proposed the modifications of contactless expenditure. He wrote that it could “Remove the contactless limit of £ 100, allowing businesses and customers greater flexibility, based on American experience and leveling the rules of the game with digital wallets”.
Contact -free cards currently require expenditure limits, because unlike other contactless payments such as Apple Pay, for which a fingerprint is necessary, contactless cards do not check if the person making the payment is the owner of the card.
The FCA now consults proposals, which could spell the end of the regulator to update the limit, the payment companies authorized to “adapt” the limits to meet their needs.
But, according to the FCA, card providers use intelligent technology to reduce the risk for consumers. David Geale, Executive Director of Digital Payments and Finance at the FCA, said: “We see more intelligent payment technology and more established fraud checks, so it’s the right time to allow companies to adapt contactless payments to meet the needs of their customers and stimulate innovation.”
The FCA stressed that many card suppliers offer customers the possibility of adjusting their contactless limits or deactivating contactless functionalities. “The FCA encourages companies to continue to offer their customers this choice,” he said.
British finances Fraud annual report 2025 There are external estimates that contactless fraud levels at around 1.3p per £ 100 are currently below 6p per £ 100 for all unauthorized fraud.
Geale said: “Although we do not expect to see immediate changes to the limits of companies, they would have the flexibility to make payments more practical for customers.”
The COVVI-19 pandemic stimulated contactless intake. When the pandemic settled, people were invited to limit physical contacts, in particular by reducing their use of money. Contactless payment technology, as its name suggests, was an ideal replacement for species because, unlike mobile phone payment applications, most people have already used payment cards. This has led groups of people such as the elderly, generally slow to adopt the latest technologies, to take it.
According to UK Finance Research, there was 18.9 billion contactless transactions made in 2024, an increase of 3.4% compared to 2023. It revealed that the average value of a contactless transaction in 2024 was £ 15.86, 1.7% greater than 2023.
The proposals are under consultation until October 15, 2025.
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