UK contactless card payment limits could be unlimited

Contactless payment limits could be increased beyond £100 and even become unlimited under the latest Financial Conduct Authority (FCA) consultation.

According to the finance regulator’s latest announcement, card providers could set their own spending limits for single contactless payments. The functionality was first introduced in 2007 with a £10 spending limit on individual payments. The limit gradually increased over time, rising from £30 to £45 in 2020 during the early stages of the pandemic, and reached £100 in 2021.

In a letter to the prime minister in January, outlining a wide range of possible measures, the Financial Conduct Authority (FCA) first proposed the changes to contactless spending limits. It wrote that it could “remove the £100 contactless limit, allowing firms and customers greater flexibility, drawing on US experience, and levelling the playing field with digital wallets”.

Contactless cards currently require spending limits because unlike other contactless payments such as Apple Pay, for which a fingerprint is needed, contactless cards do not verify whether the person making the payment is the card owner.

The FCA is now consulting on proposals, which could spell the end of the regulator having to update the limit, with payment firms allowed to “tailor” the limits to meet their needs.

But, according to the FCA, card providers are using smart technology to reduce the risk for consumers. David Geale, executive director of payments and digital finance at the FCA, said: “We’re seeing smarter payment technology and more well-established fraud controls, so it’s the right time to let firms tailor contactless payments to fit their customers’ needs and drive innovation.”

The FCA highlighted that many card providers offer customers the ability to adjust their contactless limits or turn off contactless functionality. “The FCA is encouraging firms to continue to offer their customers this choice,” it said.

UK Finance’s Annual fraud report 2025 is external estimates that contactless fraud rates at circa 1.3p per £100 are currently lower than the 6p per £100 for all unauthorised fraud. 

Geale said: “While we wouldn’t expect to see immediate changes to limits by firms, they would have the flexibility to make payments more convenient for customers.”

The Covid-19 pandemic spurred the take-up of contactless. When the pandemic took hold, people were told to limit physical contact, including reducing their use of cash. Contactless payment technology, as the name suggests, was an ideal replacement for cash because, unlike mobile phone payment apps, most people already used payment cards. This led groups of people such as the elderly, usually slow to adopt the latest technology, to take it up.

According to UK finance research, there were 18.9 billion contactless transactions made in 2024, a 3.4% increase compared to 2023. It found that the average value of a contactless transaction in 2024 was £15.86, 1.7% higher than 2023.

The proposals are out for consultation until 15 October 2025.