Brits will be able to make contactless payments of up to £100 starting from 15 October, as confirmed by UK Finance.
This increase, up from the previous limit of £45, was announced by Chancellor Rishi Sunak during his budget speech in March, following industry lobbying and a consultation by the Financial Conduct Authority (FCA). The limit had previously been raised from £30 to £45 in April 2020 in response to the Covid-19 pandemic, which accelerated the adoption of contactless payments over cash transactions.
UK Finance reported in June that the number of contactless payments in the UK rose by 12% in 2020, totaling 9.6 billion payments. The trend has highlighted a significant shift away from physical cash, with contactless payments representing more than a quarter of all payments in the UK, while cash transactions saw a decline of 35%.
Chancellor Sunak stated, “Increasing the contactless limit will make it easier than ever to pay safely and securely – whether that’s at the local shops, or your favourite pub and restaurant. As people return to the high street, millions of payments will be simpler, providing a welcome boost for retailers and shoppers.”
Despite the increase, some major banks expressed concerns about the new limit, advocating for a more cautious, staggered approach to mitigate fraud risks. For instance, Starling Bank suggested implementing an opt-out option for customers within their app.
Luke Massie, CEO of VibePay, acknowledged that while raising the limit “makes complete sense,” the significant jump could lead to an increase in “card not present” fraud.