The FCA has confirmed changes to its rules to allow for an increase in the single transaction contactless payment threshold from £45 to £100.

The contactless threshold for multiple transactions will also increase from £130 to £300.

These changes will allow the industry to increase the limit for contactless payments at the point of sale, which the regulator hopes to “securely improve convenience” for consumers and merchants.

FCA executive director, consumers and competition, Sheldon Mills, said: “During the pandemic more people have been using contactless payments. We are changing our rules to help the industry continue to respond to the changing ways in which people prefer to pay.

“Increasing the regulatory limits allows industry to raise the contactless limit in the future to meet the evolving expectations of customers and merchants for fast but secure ways to pay. When making any change, it is important that the industry continues to ensure the right protections are in place to keep payments safe and secure.

“We encourage the industry to use these changes to support consumers and merchants during the recovery from the coronavirus pandemic.”

The industry had already increased the contactless limit from £30 to £45 in April 2020, in response to changing spending behaviour as well as the impact of the COVID-19 pandemic.

Responding to the announcement, UK Finance chief executive, David Postings, commented: “UK Finance welcomes the flexibility to increase the contactless limit to £100. This is a great move for customers and will allow them to use contactless to pay for higher value transactions like their weekly shop or filling up their car with fuel. 

“This could not have been achieved whilst still in the EU so is a true Brexit dividend. We will work closely with the payments sector and retailers ahead of increasing the limit later this year.”

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