Banks will be given new powers next year to change the £100 contactless limit.
Britons will soon be able to pay more than £100 contactless as the limit is set to be scrapped, according to the Financial Conduct Authority (FCA). From March, card providers and banks will be given the power to set a new maximum single payment limit, including the option for unlimited. The regulator is also advising cardholders to be allowed to set their own maximum spending amounts or switch off any limit entirely.
Contactless payments were introduced 18 years ago, with the initial PIN-free limit set at £10. This gradually increased to £30 in 2015, £45 during the Covid pandemic, and then to the current maximum of £100. While the FCA said card providers will most likely not make any immediate changes, they will have the option to do so from March.
Anyone using their smartphone to pay can spend any amount. (Image: Getty)
With the gradual rise of contactless payments, concerns have grown over theft and fraud, as larger payments can be made without entering a PIN.
David Geale, executive director of payments and digital finance at the FCA, said: “Contactless is people’s favoured way to pay. We want to make sure our rules provide flexibility for the future, and choice for both firms and consumers.”
Mr Geale added that consumers would still get their money back if it was stolen by thieves.
The move will follow other countries which allow providers to set their own limits for contactless payments, such as Canada, Australia and New Zealand.
Currently, anyone using their smartphone to pay can spend an unlimited amount without entering their PIN.
This was made possible due to the additional in-built security features required to use the phone, such as face ID, thumbprints and passwords.
“Any changes made in the future will be done carefully and ensure strong security and fraud controls remain in place,” Jana Mackintosh, managing director of payments and innovation at UK Finance, told the BBC.
Despite the upcoming change, the FCA’s survey on adjusting or scrapping the limits was not positively received by consumers. Released during the consultation, the data shows that 78% of respondents did not want any change to the current limits on their contactless cards.
