Shoppers and businesses could soon see the contactless card limit increase or be removed entirely for some transactions, under new proposals.
The Financial Conduct Authority (FCA) is currently reviewing plans to give banks and other card providers the flexibility to set contactless limits.
If approved, people will be able to spend more in a single translation before being prompted to enter their four-digit PIN.
What’s the contactless limit today?
While smartphone payments don’t carry any limits, contactless card payments are currently limited to £100 for each transaction.
Last time the FCA increased the limit was in October 2021 when it went from £45 to £100.
Tailoring payments to consumer needs
Despite the popularity of contactless payments, many high street banks already give customers the opportunity to request a non-contactless card or switch off the contactless function on their account.
Meanwhile, some banks allow their customers to lower their contactless limit through online banking.
The proposals hope to give greater flexibility to providers and 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.
“People are still protected; even with contactless, firms will refund your money if your card is used fraudulently.”
The FCA is consulting on this until 15 October, and if approved, changes could be introduced in 2026.
How could unlimited contactless payments affect small businesses?
The British Retail Consortium warned previously that a new contactless limit can take time for some businesses to offer.
This is because there’s a huge number of payment terminals that need to be updated, and each business has to make changes in their own systems to be able to offer the increased limit.
Some of the other potential challenges facing small businesses include:
- ’contactless walk-offs’ could increase – businesses could lose money as there’ll be increased opportunity for customers to tap their card and leave the shop thinking they’ve paid when in fact they need to verify the payment with their PIN
- lost income if small businesses can’t offer the maximum contactless limit – if it takes months for some businesses to be able to offer a higher contactless limit, customers who want convenience could go elsewhere
- moving away from cash could alienate some customers – if more businesses make the move towards solely accepting card payments, customers who want to use cash could be discouraged from spending with them
Contactless payments – the key figures
Contactless payments were first introduced in 2007 as an alternative to small change. However, the number of payments and maximum spend limit has increased rapidly in recent years as society moves away from cash.
UK Finance data shows 67 per cent of all credit card and 77 per cent of all debit card transactions were contactless in August 2025. This includes payments in the UK and UK-issued cards used worldwide.
£18.9 billion
Contactless transactions in 2024*
£15.86
Average value of a contactless transaction*
*UK Finance figures from 2024. These figures include both UK-issued cards and overseas cards being used within the UK.
How contactless limits have change
This table shows how the maximum contactless payment has changed since 2007:
Year | Contactless limit |
|---|---|
2007 | £10 |
2010 | £15 |
2012 | £20 |
2015 | £30 |
2020 | £45 |
2021 | £100 |
| 2026 | New limit could come in** |
**If FCA plans are approved
Does a higher contactless limit increase the risk of crime?
With the opportunity to spend a potentially unlimited amount in one transaction without a PIN, there’s concern that pickpocketing and targeted theft of bank cards could increase.
UK Finance estimates that contactless fraud rates are currently low, at 1.3p for every £100 spent on contactless transactions. This is low compared to 6p for every £100 spent across all unauthorised fraud.
The finance body is reminding people that contactless card payments come with the same protection as any other card payment. This means banks must reimburse unauthorised fraud cases, for example if your card is lost or stolen.
What’s the future of cash?
The UK has been gradually moving towards becoming a cashless society, but it’s unlikely that it will disappear entirely any time soon.
It’s true that cashless payments were accelerated during the Covid-19 pandemic and there’s been a shift as younger generations prefer to make digital payments with smartphones. But many people still rely on cash for their everyday life, and it’s important that businesses balance new technology with customer needs.
Consumer group Which? campaigned for free access cash, which is now protected under a new law introduced in 2024. The legislation means the FCA can stop banks and building societies from closing cash access services, such as ATMs, if there are no suitable alternatives within a reasonable distance.
The latest contactless card proposals from the FCA are in response to the government’s call for ideas to drive economic growth in the UK. The consultation will be concluded on 15 October.
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