Contactless card payments may soon exceed the current £100 limit, or even unlimited, according to the Financial Conduct Authority (FCA).
Regulators are consulting on the plan that will freely set their own restrictions, making four-digit pins a rare occurrence for UK shoppers.
These changes will align the physical card with the digital wallet on a smartphone, which already allows unlimited click payments, thanks to biometric security features such as fingerprint or facial recognition.
From £10 to £100 and above
Contactless card restrictions have steadily risen since their launch in 2007: from the initial £10 to £15 in 2010, £20 in 2015, £30 in 2015, £45 in 2020 during the pandemic, and £100 in 2021.
If approved, the latest plan can be released as early as next year. However, the FCA stresses that low-risk payments can only be conducted in any high-value transactions and the provider will bear the burden if fraud occurs.
Despite strong public opposition, the proposal was made. FCA consultations show that 78% of consumers favor retaining the £100 limit, citing fears of theft and overspending.
Protection measures have been implemented after a series of five consecutive contactless payments or cumulative expenditures exceeding £300, including the requirement to enter a PIN after five consecutive contactless payments. The FCA acknowledged that raising restrictions could increase fraud losses, but said the detection system is improving and that customers will still be protected by reimbursement rules if fraud occurs.
FCA’s David Geale guarantees cardholders: “People are still protected. Even without contact, companies will refund your money if your card is used fraudulently.”
Some banks have allowed cardholders to reduce their contactless restrictions or completely turn off features. This flexibility can be expanded under the new recommendations, and customers provide more control over their spending caps.
“Any changes will be thoughtful with core security,” said the UK Financial Company, which represents the banking industry.
The move is part of a broader boost to stimulate economic growth by removing regulatory barriers, the FCA said, echoing the prime minister’s call to support the economy. Similar systems are already running in Canada, Australia and New Zealand, and card providers have set their own restrictions here.
However, this consultation lasted until October 15, highlighting the balance between consumer convenience, preventing fraud and economic stimulus. For some shoppers, unlimited contactlessness can be a welcome sign of progress. For others, it has the potential to erode the trust of one of the most widely used payment methods in the UK.
