The UK’s Financial Conduct Authority (FCA) is considering proposals to increase contactless payment limits for larger transactions.
Initially mentioned in January, the FCA aims to assess whether eliminating the current £100 cap could enhance consumer and merchant experiences, as well as boost economic growth in the UK. This adjustment may provide individuals and businesses with more options, flexibility, and smoother transaction processes.
The contactless limit was raised from £45 in 2021, shortly after it increased from £30 during the rise of tap-and-pay methods driven by the Covid-19 pandemic.
One proposal under discussion is to permit companies with robust fraud prevention technologies to establish their own limits, similar to practices in the United States. This change could level the playing field with digital wallets that already allow higher limits through biometric safeguards.
David Geale, the FCA’s executive director of payments and digital finance, noted, “With advancements in payment technology and stronger fraud controls, it’s the right time for firms to customize contactless payments to meet their customers’ needs and encourage innovation. While immediate changes to limits are not expected, firms would gain the flexibility to enhance customer convenience.”
Geale emphasized that consumer protection remains paramount, stating that firms will refund payments in cases of fraudulent activity.
According to UK Finance’s Annual Fraud Report 2025, contactless fraud rates are presently low, estimated at around 1.3p per £100 spent, compared to 6p per £100 for all unauthorized fraud. However, higher payment limits could increase opportunities for fraud.
Reflecting consumer concerns, 78% of respondents to the FCA’s initial engagement paper expressed a desire to maintain the current limits. The FCA has received nearly 1,300 responses and believes most firms will likely continue adhering to the £100 cap “for the time being.”
The proposals are open for consultation until October 15, 2025.