The UK's Financial Condut Authority is consulting on proposals to raise contactless limits for larger payments.
In a move first trailed in January, the FCA says it is looking into whether removing the current £100 limit could benefit consumers, merchants and economic growth in the UK by giving people and businesses greater choice, flexibility and smoother purchases.
The contactless limit was raised from £45 in 2021, just a year after a rise from £30 amid a surge in tap and pay during the Covid-19 pandemic.
One option under consultation is allowing firms who use technology to reinforce strong fraud controls to set their own limits, as happens in the United States. Suh a stance would level the playing field with digital wallets, which are already able to offer higher limits through biometric controls.
David Geale, executive director of payments and digital finance at the FCA, says: "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."
UK Finance’s Annual Fraud Report 2025 estimates that contactless fraud rates are currently low at circa 1.3p per £100 spent on contactless transactions, compared to 6p per £100 for all unauthorised fraud.
Nonetheless, a higher limit and therefore bigger payoff would be a temptation for further fraudulent attempts.
Reflecting these fears, 78% of consumers who responded to the FCA's initial engagement paper said they did not want any change to the limits.
TheFCA says it received nearly 1,300 responses to the paper and it believes that most firms will continue to implement the £100 limit 'for the time being'.
The proposals are out for consultation until 15 October 2025.