BREAKING: Major change to contactless payments could be introduced for all UK shoppers

The spend threshold for contactless card payments could become unlimited under new proposals being looked at by the financial watchdog.

The contactless limit is currently set at £100 - for anything above this, shoppers normally need to enter their four-digit PIN. But the Financial Conduct Authority (FCA) is considering raising this limit, or removing it entirely.

The FCA first announced plans to potentially change the contactless limit in a letter to the Prime Minister back in January. In a new update this week, the regulator said it wants to "give card providers the flexibility to decide the right limit" for customers.

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The proposals will be consulted on until October 15, 2025.

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.

“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. People are still protected; even with contactless, firms will refund your money if your card is used fraudulently.”

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