UK’s Financial Conduct Authority Ups Limit For Contactless Payments

contactless payment

The U.K.’s Financial Conduct Authority (FCA) is increasing the limits on contactless payments to 100 pounds for single transactions and 300 pounds for multiple transactions, according to a Wednesday (March 3) press release.  

The new thresholds increase single transactions from the previous limit of 45 pounds and multiple transactions from the former limit of 130 pounds. The increased limits are intended to help the retail industry while also making it easier for people to shop at physical stores.

“During the pandemic more people have been using contactless payments,” said FCA Executive Director, Consumers and Competition Sheldon Mills. “We are changing our rules to help the industry continue to respond to the changing ways in which people prefer to pay.”

Mills added, “Increasing the regulatory limits allows the 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.”

The revised limits follow the FCA’s public consultation regarding contactless payment limits. The changes will enable the industry to up the limit for point of sale (POS) payments, which will make it more convenient for both users and retailers. 

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

Although contactless transactions have accelerated, particularly during the coronavirus pandemic, cash is still a primary payment method for many businesses. The FCA is making it a priority to ensure everyone can access the cash they need. 

The U.K. said in January that it was planning to increase the limits on contactless payments. Contactless cards, or “tap and go” cards, were first introduced in 2007. Many safety-conscious customers want payments to be entirely touchless if possible.

October PYMNTS data showed that 57 percent of consumers surveyed indicated that merchants’ digital payment offerings impacted their willingness to shop in certain stores.