Banks and payment providers across the UK gain flexibility to set their own contactless card spending limits starting today. The Financial Conduct Authority’s move eliminates the previous £100 cap, enabling firms to adapt to rising inflation, advancing technology, and evolving consumer behaviors. This change also aims to strengthen fraud prevention measures.
Providers can now adjust limits higher or lower and modify how frequently customers need to enter their PIN after multiple contactless transactions. Major lenders such as NatWest, Santander, Lloyds, Barclays, HSBC, Nationwide, and TSB confirm no immediate plans to exceed the £100 threshold. Digital banks like Starling and Monzo are monitoring the situation closely.
Many banks already offer app-based options for customers to reduce contactless limits or disable the feature entirely. Contactless payments dominate in-store transactions, comprising 94.6 percent of eligible card uses last year according to Barclays data. Industry statistics reveal it accounts for 67 percent of credit card and 76 percent of debit card transactions, with an average payment value just under £18.
Higher-value purchases remain possible through mobile wallets with biometric verification like fingerprints or facial recognition. Consumer safeguards stay intact, including full reimbursements for fraudulent transactions.
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