Contactless card payments in the UK could soon go above the current £100 limit and may even become unlimited under new plans from the Financial Conduct Authority (FCA).
If approved, shoppers could pay for bigger purchases, such as a weekly supermarket shop or a large family meal, with just a tap of their card instead of entering a PIN. The changes could be introduced as early as next year.
When contactless payments were launched in 2007, the limit was just £10. It has gradually increased over the years to £30 in 2015, then £45 in 2020 during the pandemic, and finally to £100 in 2021.
The FCA said banks and card providers would be able to set their own limits and might even let customers choose their own.
However, it admitted that higher limits would increase the risk of fraud. Providers would need to ensure security was strong, and customers would still be refunded if their card was used fraudulently.
Not everyone supports the plan. In a consultation, 78% of consumers said they preferred the current rules. Many worry that unlimited payments would make stolen cards more attractive to thieves.
Some people also said entering a PIN can help them keep track of their spending.
Supporters argue that contactless payments save time, reduce friction when paying, and reflect how people already use smartphones, which have no payment limits thanks to fingerprint or face ID security.
Banks already allow customers to lower their own card limits or turn off contactless entirely. But payment machines would need to be updated before the new system could be introduced.
The FCA said any changes would be rolled out carefully, with security as the top priority. It is consulting on the proposal until 15 October.
