Millions of people in the UK could soon be able to make contactless payments above £100 with a single tap, after the Financial Conduct Authority (FCA) confirmed plans to remove the long-standing cap. From March, banks and card providers will be allowed to set their own maximum limits, including the option of unlimited contactless spending, without requiring customers to enter their PIN.
The FCA also encouraged firms to give consumers more control over how their cards are used, such as allowing them to set personal limits or disable contactless payments entirely. While the regulator described the move as a “significant shift,” it stressed that banks are not expected to raise limits immediately. Firms will be able to adapt their offerings gradually in response to consumer demand and technological changes.
Contactless payments were introduced in the UK in 2007 with a £10 limit. This cap rose steadily over the years, reaching £100 in 2021, a rise accelerated by the Covid-19 pandemic. By comparison, smartphone payments using biometric authentication, such as fingerprint or facial recognition, already allow unlimited spending.
Despite the regulatory change, consumer appetite for higher limits appears limited. An FCA survey conducted during the consultation found that 78 percent of respondents opposed increasing the £100 cap. Many cited concerns about fraud, theft, and accidental overspending. Consumer groups and academics have also warned that higher or unlimited contactless limits could make cards more attractive to criminals. Although safeguards exist, such as requiring a PIN after a series of transactions, critics say removing the cap could increase risk, particularly if a card is lost or stolen.
Financial abuse charities have raised additional concerns, noting that higher limits could make it easier for abusers to access victims’ accounts without immediate detection. The shift also fuels the broader move toward a cashless society, which some campaigners argue risks excluding vulnerable groups who rely on cash.
David Geale, the FCA’s executive director of payments and digital finance, said the aim is 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 sought to reassure customers that any changes would be implemented cautiously. Jana Mackintosh, managing director of payments and innovation at UK Finance, said banks would maintain “strong security and fraud controls.” Other countries, including Canada, Australia, and New Zealand, already allow card providers to set their own contactless limits.
The announcement comes as efforts to preserve access to cash continue. Cash Access UK recently opened its 200th shared banking hub, providing face-to-face services in areas affected by branch closures. While the £100 cap may soon be history, the extent to which banks raise contactless limits—and how many consumers opt in—remains uncertain.
