FCA Seeks Input on Removing £100 Contactless Payment Limit

The UK Financial Conduct Authority (FCA) is seeking public feedback on a proposal to scrap the £100 contactless payment limit, a move that could provide greater flexibility and convenience for consumers and businesses. The regulator believes that eliminating the cap could promote innovation in payments and fraud prevention solutions, allowing firms with strong security measures to set their own limits, as seen in the United States.

The contactless limit was last raised from £45 to £100 in 2021, following an earlier increase from £30 due to the rise in tap-and-go payments during the pandemic. The UK Treasury’s Economic Secretary, Emma Reynolds, supports the review, emphasizing its potential benefits for families and businesses.

The FCA is accepting feedback until 9 May, with input from merchants, financial institutions, and the public shaping future decisions on the contactless payment landscape.