Paying by contactless could soon be easier than ever, as the FCA removes red tape and gives banks and payment providers greater flexibility to meet changing consumer needs.

Under the new approach, banks and payment providers with robust fraud prevention systems will be able to set their own contactless payment limits. This flexibility allows firms to adapt more quickly to evolving consumer behaviour, inflationary pressures, and advances in payment technology.

Providers are also being encouraged to give customers more control over how they pay — including the option to set a personal contactless limit or switch contactless payments off entirely, a feature already offered by many high street banks.

Contactless Is Now the Preferred Way to Pay

Contactless payments have become the default choice for everyday spending. Research by Barclays shows that nearly 95% of eligible in-store card transactions in 2024 were made using contactless, highlighting how central it has become to modern life.

As usage grows, strong fraud controls remain essential. Only firms with proven safeguards in place will be able to benefit from the increased flexibility. This creates a powerful incentive for providers to strengthen their fraud prevention measures, giving consumers greater protection and peace of mind.

Consumer Protection Remains a Priority

Importantly, existing consumer protections will continue to apply. Customers will still be reimbursed in cases of unauthorised fraud, such as when a card is lost or stolen, ensuring confidence and trust in contactless payments remains high.

“Contactless is people’s favoured way to pay. We want to ensure our rules provide flexibility for the future, while offering choice for both firms and consumers.”

— David Geale, Executive Director of Payments and Digital Finance, FCA

“Making life easier for consumers is a positive for hospitality and high street businesses. Lifting contactless limits can deliver quicker, smoother experiences, while giving providers and customers much-needed flexibility.”

— Kate Nicholls, Chair, UKHospitality

Supporting Growth Through Smarter Regulation

The new standards follow extensive public discussion and consultation on how to make payments more convenient, while continuing to support economic growth and digital innovation. This initiative forms part of a broader package of around 50 growth measures outlined by the FCA to support a modern, competitive financial system.

The rule changes will come into effect in March 2026. From that point, firms can choose if and when to introduce higher or more flexible contactless limits. Any changes must be clearly communicated to customers, ensuring transparency and informed choice.