The Financial Conduct Authority (FCA) has announced that the £100 limit on contactless card payments will be removed from 19 March 2026. Banks and card providers will be allowed to set their own maximums, potentially enabling consumers to spend unlimited amounts without entering their PIN.
Currently, contactless payments via cards are capped at £100 per transaction and £300 or five taps cumulatively. Mobile phone payments are not subject to these limits. The FCA stated that providers with strong fraud controls can also lift the cumulative limit if they choose.
The regulator said the changes aim to give banks flexibility to respond to consumer demand, inflation, and new technology. However, customers must be able to set their own limits or disable contactless payments. In the short term, most providers are expected to keep existing restrictions.
Contactless payments were introduced in 2007 with a £10 limit, gradually rising to £100 in 2021. A Barclays survey found 95% of eligible in-store payments are now contactless, but an FCA survey showed 76% of consumers think the limit should be £100 or lower.
Consumer protections remain, including reimbursement for unauthorised fraud. David Geale of the FCA said the change provides flexibility for the future. Kate Nicholls of UKHospitality welcomed the move, while economist Richard Whittle warned it could encourage overspending and debt accumulation.
