UK may remove £100 limit on contactless payments

The Financial Conduct Authority (FCA) in the UK is considering a significant change to contactless payment limits. This could affect millions of shoppers who currently rely on contactless methods to make purchases. Contactless payments were first introduced in 2007 with a limit of £10. This limit increased to £100 by 2021. Now, the FCA is looking into possibly removing this cap altogether. An engagement paper revealed that 85% of people in the UK use contactless payments at least once a month. As of late 2023, there were 149 million contactless cards in circulation, with most debit and credit cards featuring this technology. The proposed changes could give businesses more freedom to set their own payment limits based on their fraud prevention measures. This concept is similar to systems used in the United States. David Geale from the FCA emphasized that this is a chance to build more trust in the UK’s payments system and to support economic growth. Economic Secretary Emma Reynolds welcomed the FCA's review, stating it could provide families with more flexibility for their purchases. Additionally, the FCA is also looking to potentially ease mortgage rules to help more first-time buyers enter the housing market. Experts agree that changes in regulations could improve affordability for home buyers. They are hopeful that government support can help widen options for those looking to purchase a home.