The UK Financial Conduct Authority (FCA) is seeking feedback on its proposal to eliminate the £100 limit on contactless card payments.
Initially announced in January, the FCA is examining whether removing this limit would provide benefits to consumers and merchants while boosting economic growth in the UK. The intention is to offer increased choice, flexibility, and a smoother purchasing experience for individuals and businesses.
The FCA suggests that less prescriptive regulations could empower firms and encourage innovative payment methods or enhanced fraud prevention strategies. One potential approach under consideration involves allowing companies that utilize technology to strengthen fraud controls to establish their own limits, similar to the practices in the United States.
The contactless limit was previously raised from £45 to £100 in 2021, following an increase from £30 the year before, in response to a surge in contactless payments during the Covid-19 pandemic.
Emma Reynolds, Economic Secretary to the Treasury, has expressed support for the ongoing discussion, stating, “The FCA’s review of the contactless payment limits, including the potential removal of the £100 limit on individual payments, is a positive move to ensure families can safely enjoy more flexibility in their purchasing.”
Stakeholders are invited to provide feedback on the engagement paper until May 9.