Millions of people could soon be able to spend more than £100 with a single tap of their bank card, after the financial regulator confirmed plans to lift the current contactless payment limit.
From March, banks and card providers will be allowed to set their own maximum limits for contactless payments, including the option of removing the cap altogether, without requiring customers to enter their PIN. The Financial Conduct Authority (FCA) has also encouraged firms to give customers greater control, such as allowing them to set their own limits or disable contactless payments entirely.
The move marks a significant shift from the long-standing £100 cap, although the FCA stressed that it does not expect banks to raise limits immediately. Instead, firms will be given flexibility to adapt their products over time in response to consumer demand and technological change.
Contactless payments were first introduced in the UK in 2007 with a £10 limit. That ceiling has steadily risen over the years, reaching £100 in 2021 following a series of increases accelerated by the Covid pandemic. By contrast, smartphone payments using biometric security such as fingerprint or facial recognition already allow unlimited spending.
Despite the regulatory change, appetite for higher limits appears muted. An FCA survey conducted during the consultation found that 78 per cent of consumers did not want the £100 limit changed. Many respondents cited concerns over fraud, theft and accidental overspending.
Those worries have been echoed by academics and consumer groups, who warn that higher or unlimited contactless limits could make cards more attractive to criminals. While safeguards already exist — such as requiring a PIN after a series of contactless transactions — critics argue that removing the cap could increase risk, particularly if a card is stolen.
There are also concerns about spending behaviour. Unlimited contactless payments could encourage impulsive purchases, especially on credit cards, where consumers are borrowing rather than spending their own money. Financial abuse charities have warned that higher limits could make it easier for abusers to drain victims’ accounts without immediate detection, while also accelerating the shift towards a cashless society.
The FCA said consumers would still be protected against fraud losses. David Geale, the regulator’s executive director of payments and digital finance, said the aim was to balance flexibility with safety.
“Contactless is people’s favoured way to pay,” he said. “We want to make sure our rules provide flexibility for the future, and choice for both firms and consumers.”
Industry bodies have sought to reassure customers that any changes would be cautious. Jana Mackintosh, managing director of payments and innovation at UK Finance, said banks would ensure “strong security and fraud controls remain in place”.
Several other countries, including Canada, Australia and New Zealand, already allow card providers to set their own contactless limits.
The announcement comes as efforts continue to preserve access to cash for those who rely on it. Cash Access UK said this week it has opened its 200th shared banking hub, offering face-to-face services in communities affected by branch closures.
While the £100 cap may soon be history, how far banks choose to push contactless limits — and how many customers opt in — remains to be seen.
