The FCA is reviewing whether adjusting or removing the contactless payment limit could provide greater benefits for consumers, businesses, and the UK economy.

The Financial Conduct Authority (FCA) is exploring potential changes to contactless payment limits, aiming to offer consumers and businesses more flexibility, smoother transactions, and increased choice.

A less prescriptive regulatory approach could empower firms to implement innovative payment methods and fraud prevention solutions while maintaining strong consumer protections.

This initiative aligns with the FCA’s broader efforts, announced in January, to support economic growth. One proposal under consideration is to allow firms with robust fraud controls to set their own contactless limits—similar to practices in the United States.

Any changes would need to align with the Consumer Duty’s requirement to ensure good outcomes for customers.

David Geale, Executive Director of Payments and Digital Assets at the FCA, stated:
“Currently, 85% of UK consumers use contactless payments each month. This presents an opportunity to enhance the payments system while reinforcing trust. We’ve acted swiftly on this review as part of the 50 measures introduced earlier this year to drive economic growth and improve lives.”

Economic Secretary to the Treasury, Emma Reynolds, added:
“Every regulator has a role in our Plan for Change, which aims to put more money into working people’s pockets. The FCA’s review of contactless limits, including potentially removing the £100 cap, is a welcome step toward providing families with safer, more flexible payment options.”

The FCA will ensure that any adjustments maintain strong consumer protections. Existing rules requiring firms to reimburse customers for unauthorised transactions, such as those resulting from lost or stolen cards, will remain in place.

The FCA is inviting feedback on this engagement paper, with submissions open until Friday, 9 May 2025.