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The UK Financial Conduct Authority (FCA) is inviting industry feedback on its proposal to eliminate the current £100 contactless payment limit on card transactions.
Initially hinted at in January, the FCA is now formally exploring whether removing the cap could enhance consumer convenience, support businesses, and drive economic growth by offering greater flexibility in payment choices.
According to the regulator, making payment regulations less restrictive could empower financial firms to implement innovative payment solutions while strengthening fraud prevention mechanisms.
One of the key options under review is allowing firms with robust fraud detection technology to determine their own contactless payment limits—similar to the approach used in the United States.
The current £100 contactless limit was introduced in 2021, following an increase from £45 and, prior to that, £30, as tap-and-go payments surged during the COVID-19 pandemic.
Economic Secretary to the Treasury, Emma Reynolds, has expressed support for the discussion, stating: “The FCA’s review of contactless payment limits, including the potential removal of the £100 cap, is a positive step toward offering families greater flexibility while ensuring secure transactions.”
The FCA is welcoming responses from stakeholders, with a deadline for feedback set for 9 May.
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