Contactless card payments could soon exceed the current £100 cap – and even become unlimited – under proposals from the Financial Conduct Authority (FCA).
The regulator is consulting on plans that would give banks and card providers the freedom to set their own limits, potentially making the four-digit PIN a rarity for UK shoppers.
The changes would bring physical cards in line with digital wallets on smartphones, which already allow unlimited tap-and-go payments thanks to biometric security features such as fingerprints or facial recognition.
From £10 to £100 – and beyond
Since their introduction in 2007, contactless card limits have risen steadily: from £10 initially, to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020 during the pandemic, and £100 in 2021.
If approved, the latest plan could be rolled out as early as next year. However, the FCA stressed that any higher-value transactions would only be permitted for low-risk payments, with providers carrying the burden if fraud occurs.
The proposals come despite strong opposition from the public. An FCA consultation revealed that 78 per cent of consumers favoured keeping the £100 limit, citing fears of theft and overspending.
Protections already in place include a requirement to enter a PIN after a series of five consecutive contactless payments, or once cumulative spending exceeds £300. The FCA acknowledged that raising limits would likely increase fraud losses, but said detection systems are improving and customers remain protected by reimbursement rules if fraud occurs.
David Geale of the FCA reassured cardholders: “People are still protected. Even with contactless, firms will refund your money if your card is used fraudulently.”
Some banks already allow cardholders to lower their contactless limit or switch the feature off entirely. Under the new proposals, this flexibility could be expanded, with customers given more control over their own spending caps.
UK Finance, which represents the banking industry, said: “Any changes will be made thoughtfully with security at the core.”
The FCA said the move is part of a wider push to stimulate economic growth by removing regulatory barriers, echoing calls from the Prime Minister for regulators to support the economy. Similar systems already operate in Canada, Australia and New Zealand, where card providers set their own limits.
But the consultation, which runs until 15 October, highlights the balancing act between consumer convenience, fraud prevention and economic stimulus. For some shoppers, unlimited contactless could be a welcome sign of progress. For others, it risks eroding trust in the security of one of Britain’s most widely used payment methods.
