Contactless card payment limit could be raised to £100, FCA says

The limit for a single contactless card payment was raised last year (Barclaycard/PA)

(Barclaycard/PA)

The limit on the amount allowed to be spent in a single contactless card payment could be raised to £100, the City regulator has revealed.

The Financial Conduct Authority (FCA) increased the limit for contactless transactions from £30 to £45 last April at the start of the Covid-19 pandemic in a bid to help businesses and consumers as they pivoted away from cash to aid social distancing.

The body revealed on Wednesday that it now intends to “shortly” consult on a possible increase to this limit.

It said: "It's important that payments regulation keeps pace with consumer and merchant expectations.

"Recognising changing behaviour in how people pay, as part of a wider consultation, we will shortly be seeking views on amending our rules to allow for a possible increase in the contactless limit to £100.”

"Tap and go" contactless cards initially had a limit of £10 in 2007, and this was increased to £15 in 2010, £20 in 2012 and £30 in 2015.

The FCA sets the boundaries for contactless payments, and then banks can set the actual limits for their cards.

Latest data from body UK Finance shows that there was a 16% increase in the total value of contactless payments in the UK in October, compared with the same month in 2019, and some have warned that the pandemic will mean “the end of cash”.

The Government has said it intends to legislate to protect access to cash, however.

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