CONTACTLESS PAYMENTS COULD GO BEYOND £100 — FCA plans to scrap limits, making PINs nearly obsolete
Paying for almost anything with just a tap of your card may soon become the norm, as new proposals could see contactless payment limits rise well beyond £100 — and possibly disappear altogether.
The Financial Conduct Authority (FCA) is considering giving banks and card providers the power to set their own contactless limits. If approved, shoppers could soon pay for big supermarket trips or a large family meal without ever needing to key in a PIN.
The change would bring physical cards closer in line with smartphone digital wallets, which already allow unlimited contactless transactions.
Since the technology was first introduced in 2007 with a £10 limit, contactless caps have gradually increased: £15 in 2010, £20 in 2012, £30 in 2015, then a pandemic-era jump to £45 in 2020, and finally £100 in 2021.
While the freedom to scrap limits would be welcomed by some, many consumers remain sceptical. In a recent consultation, 78% of respondents said they were against raising the cap, citing concerns about fraud and theft.
The FCA has stressed that only “low-risk transactions” would qualify for higher-value payments, and that card providers — not customers — would shoulder responsibility if something went wrong.
The regulator doesn’t expect any immediate changes, but says banks will value the flexibility as technology evolves and prices continue to rise. Customers may also eventually be able to set their own personal limits.
If approved, the proposals could take effect as early as next year.
