FCA considers UK contactless payments limit rise to £100

The UK contactless payment limit for a single transaction could be raised to £100.

Last year, it went up from £30 to £45 during the coronavirus outbreak.

"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," the Financial Conduct Authority (FCA) said in an online post.

We continue to support consumers during the #coronavirus pandemic by extending mortgages and consumer credit guidance, and consulting on a raised £100 contactless payments limit.

Read our statement for more detail https://t.co/dp4dQ7Omo7 pic.twitter.com/jnx7B9Tzc3
— Financial Conduct Authority (@TheFCA) January 27, 2021

Barclaycard

The coronavirus outbreak has cemented contactless as the preferred way to make UK in-store payments, according to Barclaycard.

Its recently released research has contactless accounting for 88.6% of all eligible card transactions in 2020.

The total value of these transactions grew by 7% last year as many retailers heavily promoted contactless as the safest way to buy things during the coronavirus crisis and, in some cases, declined the use of banknotes and coins.

The average value of payments increased by 29% following the introduction of the £45 limit.

Users made an average of 141 payments in 2020, worth a total of £1,640. Whilst over-65s were most likely to embrace the technology for the first time last year.

Raheel Ahmed, Head of Consumer Products, said: “We believe that contactless is the safer, faster and most responsible way to pay in-store, and we encourage all consumers to take advantage of it wherever possible.”