Contactless limit could rise

The UK spending limit for contactless payments was increased in April from £30 to £45 in response to its surge at the height of the coronavirus lockdown.

The FCA said: “It’s important that payments regulation keeps pace with consumer and merchant expectations. Recognising changing behaviour in how people pay, as part of a wider consultation, we will shortly be seeking views on amending our rules to allow for a possible increase in the contactless limit to £100.”

In response, Pete Wickes, general manager of EMEA at Worldpay, said: “It’s really positive to see the FCA responding to consumer demand and reviewing the contactless limit, especially given the increasing popularity and use. It is clear that demand is there for another increase. Worldpay research shows that 25% of consumers now only shop in stores when they can use card or contactless payments, and mobile contactless payments – which have higher limits – have also seen growth. 

“It is vital that shops and businesses have sufficient time to implement the changes given the current extraordinary operating conditions. Some consumers will also need time to adjust. Our research reveals that 47% of older consumers are worried contactless payments are not secure, so education will be key.”

Earlier this year, it was reported that industry body UK Finance asked the Treasury to increase the contactless spending limit to £100.