The official cap on contactless payments has been lifted by the Financial Conduct Authority (FCA), but major UK banks are keeping the £100 limit in place. Barclays, HSBC, Lloyds, Nationwide, NatWest, and Santander have all said they will maintain the current ceiling, while digital-only bank Monzo also confirmed no immediate changes. Starling and Revolut have yet to decide.
UK Finance, the banking lobby group, said lenders are holding off because there is no widespread consumer demand and shop terminals would need upgrading. The FCA scrapped the limit to allow banks to respond to inflation and new technology, but banks are not obliged to change immediately. Some, like Lloyds and Santander, already let customers set their own limits up to £100.
Contactless payments remain the most popular method, accounting for 67% of credit card and 76% of debit card transactions, with an average value of just under £18. The FCA expects banks to have strong fraud controls before raising limits, potentially requiring verification for large purchases. There are also concerns about budgeting, as easier spending may reduce tracking of outgoings.
Digital wallets like Apple Pay have no transaction limit, as they use biometric verification. This will not change under the new rules.
