Existing limits on contactless payments could be raised or removed entirely, the UK’s financial watchdog has confirmed.
The Financial Conduct Authority (FCA) has announced that banks and payment providers that demonstrate strong fraud controls will be allowed to set their own limit for contactless payments, giving way to greater flexibility in responding to consumer demands.
Payments providers are also being encouraged to allow consumers to set their own limits, including having the option to remove the limit altogether.
According to research from Barclays, contactless payments have firmly become the standard, with almost 95% of all eligible in-store card transactions being contactless in 2024.
The FCA said it believes the greater flexibility will incentivise firms to step up their fraud prevention. The regulator noted that existing customer protections must remain in place.
“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,” said David Geale, executive director of payments and digital finance at the FCA.
UKHospitality chair Kate Nicholls added: “Making life easier for consumers is a positive for any hospitality and high street business, and I’m pleased the FCA is bringing forward this change.
“Contactless has increasingly become the preferred payment method of choice for many people and lifting the limit can mean quicker and easier experiences for consumers. While many people still prefer to use cash or chip and PIN, this change adds much-needed flexibility for providers and consumers.”
The rule changes take effect in March 2026, after which it will be up to the firms to decide wha limits to set.
