UK plans to scrap £100 contactless limit despite public opposition
Plans are in motion to remove the £100 contactless spending limit potentially allowing banks and payment providers to set their own caps - or even eliminate them entirely.
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The proposed changes from the Financial Conduct Authority (FCA), currently under consultation, aim to modernise the UK's payment infrastructure and reflect the growing consumer reliance on contactless transactions.
Contactless limit increases have sparked fraud concerns, but the FCA said only low-risk transactions will qualify - and providers, not consumers, will bear any losses.
The regulatory body has proposed removing the limit, despite 78% of respondents opposing any change, according to the BBC.
The FCA will consult on its proposals until October 15 and, if approved, they could come into effect from early next year.
Read more: Marks & Spencer ‘cyber incident’ hits shops’ contactless payments and affects online orders
Read more: Barclays saw contactless spending hit record level in 2024
Currently, customers are limited to £100 per contactless transaction and a maximum of £300 in contactless spending per day.
David Geale, executive director of payments and digital assets at the FCA, said: "Currently 85% of people in the UK make contactless card payments each month. This is the perfect opportunity to explore whether we can improve and increase trust in the UK’s payments system.
"We’ve worked fast to progress this work which is one of around 50 measures we put forward at the start of the year to help support economic growth across the UK and, in turn, improve lives.'
In 2024, Barclays said it saw contactless spending hit a record level.
Around 94% of eligible in-store card transactions were contactless last year, according to the bank.
It also found that the average contactless purchase was for £16.10 and the average person used the technology 236 times.
For the fourth consecutive year, the over-65s were the fastest growing group of contactless users, with 84.1% using the payment method.
Across its issuing and acquiring businesses, Barclays sees nearly 40% of UK credit and debit card transactions.
The figures were based on consumer card spending data from Barclays debit card and Barclaycard credit card transactions.
Karen Johnson, head of retail at Barclays, said: “Convenience is the driving force behind contactless technology becoming so embedded in the UK’s payment ecosystem. The increasing prevalence of self-service screens at retail and hospitality venues shows the importance of a smooth experience, regardless of the sector.
“However, contactless transactions cannot replace human interaction altogether. Consumer-facing businesses must continue to recognise the value that in-store members of staff can offer when it comes to fostering customer relationships and trust.”