The UK financial regulator has proposed expanding the use of contactless payments by allowing providers more freedom over its limits.
The Financial Conduct Authority (FCA) is consulting on proposals for contactless payments to be allowed for larger purchases as the payment time grows in popularity.
The FCA said on Wednesday it encourages payment firms to offer as much flexibility as possible to customers, including allowing broader adjustments for contactless limits and the ability to turn the feature off if desired.
“We‘re seeing smarter payment technology and more well-established fraud controls, so it’s the right time to let firms tailor contactless payments to fit their customers’ needs and drive innovation,” said David Geale, executive director of payments and digital finance at the FCA.
“While we wouldn’t expect to see immediate changes to limits by firms, they would have the flexibility to make payments more convenient for customers. People are still protected; even with contactless, firms will refund your money if your card is used fraudulently.”
Figures from UK Finance last year found that a third of adults in Britain use contactless mobile payments, a figure that jumps to almost three-quarters among 16 to 24-year-olds.
Most providers limit the payment type to purchases of up to £100. The FCA notes that contactless payments are as protected as any other card payment from fraud, requiring reimbursement for unauthorised fraud cases.
According to UK Finance, contactless fraud rates are just 1.3p stolen per £100 spent, compared to 6p per £100 for all unauthorised fraud.
