The Financial Conduct Authority is seeking views on whether removing or increasing the 拢100 contactless limit could benefit consumers, merchants and economic growth in the UK.
Families and businesses across the country could benefit from greater choice, flexibility and smoother purchases under proposals being considered by the FCA.
Making regulation less prescriptive would also give firms greater control and could promote innovative payment methods or fraud prevention solutions, it said.
The potential measure forms part of the FCA鈥檚 commitment to support the government鈥檚 growth agenda and placate Prime Minister Sir Keir Starmer.
One option put forward is to allow firms who use technology to reinforce strong fraud controls to set their own limits, as happens in the United States.
鈥淐urrently 85% of people in the UK make contactless card payments each month. This is the perfect opportunity to explore whether we can improve and increase trust in the UK鈥檚 payments system,鈥� said David Geale, executive director of payments and digital assets at the FCA.
鈥淲e鈥檝e worked fast to progress this work which is one of around 50 measures we put forward at the start of the year to help support economic growth across the UK and, in turn, improve lives.鈥�
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Economic Secretary to the Treasury Emma Reynolds said: 鈥淓very regulator has a part to play in the collective mission to drive growth through our Plan for Change, which puts more money into working people鈥檚 pockets.
鈥淭he FCA’s review of the contactless payment limits, including removing the 拢100 limit on individual payments, is a welcome step to ensure that families can safely benefit from more flexibility when making purchases.鈥�
The FCA says it will focus on how consumers are protected in the case of any changes to contactless limits.聽
Existing legislation requiring firms to reimburse consumers in cases of unauthorised payment fraud, for example when their cards are lost or stolen, will remain in place.
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