Millions of shoppers across the United Kingdom are poised to experience a major shift in how they pay for goods, as the Financial Conduct Authority (FCA) prepares to lift the £100 contactless card payment limit starting March 19, 2026. Under the new rules, banks and card providers will be able to set their own maximum—or even unlimited—single contactless payment amounts, removing the need for consumers to enter a four-digit PIN for higher-value purchases. The change is designed to offer greater flexibility and personal choice, but it also raises questions about security, spending habits, and the future of cash in British society.
According to BBC News, the FCA has confirmed that, from March, financial institutions will have the option to determine their own contactless card limits. But it’s not just about giving banks more power: the FCA is strongly encouraging providers to allow customers to set their own individual limits—or even switch off contactless payments entirely if they prefer. Some banks already offer this level of control, but the new guidelines aim to make it a standard feature across the industry.
The move comes despite the FCA’s own survey, which revealed that 78% of consumers did not want any change to the current £100 limit. The regulator’s consultation, which ran until October 15, 2025, also drew lukewarm interest from industry respondents. Yet, as contactless payments have become increasingly popular—accounting for 94.6% of eligible in-store card transactions in 2024, according to Barclays—regulators and businesses alike see the need to adapt to evolving consumer habits, inflation, and new technology.
Contactless card payments have come a long way since their introduction in 2007, when the transaction limit was just £10. Over the years, the ceiling has been raised several times: to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020 (in response to the Covid pandemic), and finally to £100 in October 2021. The steady increases have mirrored the public’s growing comfort with tap-and-go transactions, as well as the rise of digital wallets and smartphone payments, which already allow users to spend any amount without a PIN thanks to biometric security features like thumbprints and face ID.
But as the limits have climbed, so too have concerns about fraud and financial abuse. Critics worry that higher—or unlimited—contactless limits could make stolen cards more attractive to thieves and fraudsters. Protections are in place, such as requiring a PIN after a series of consecutive contactless transactions, and the FCA insists that consumers will continue to be reimbursed for unauthorized transactions. David Geale, executive director of payments and digital finance at the FCA, told BBC News, “Contactless is people’s favoured way to pay. We want to make sure our rules provide flexibility for the future, and choice for both firms and consumers.”
Still, the potential for abuse remains a sticking point for some. Financial abuse charities have raised alarms that unlimited contactless spending could allow abusers to drain a survivor’s bank account without checks or alerts, especially if card transactions are monitored online by abusers. There are also worries that relaxing contactless limits could accelerate the shift toward a cashless society, leaving vulnerable groups—such as elderly people or survivors of financial abuse—without crucial access to physical money. As bank branches close across the country, initiatives like shared banking hubs have become vital: on December 19, 2025, Cash Access UK announced the opening of its 200th banking hub in Billericay, Essex, specifically to help vulnerable customers maintain access to cash.
According to The Independent, the FCA’s review of contactless card limits was one of around 50 measures outlined in a January letter to Prime Minister Sir Keir Starmer, all aimed at supporting economic growth. The regulator believes that giving firms more flexibility will incentivize them to bolster their fraud prevention systems, ultimately providing greater protection for consumers. Firms that choose to change their limits will be required to communicate those changes clearly to customers, ensuring transparency and minimizing confusion.
Kate Nicholls, chairwoman of UKHospitality, welcomed the FCA’s move, saying, “Making life easier for consumers is a positive for any hospitality and high street business, and I’m pleased the FCA is bringing forward this change. Contactless has increasingly become the preferred payment method of choice for many people and lifting the limit can mean quicker and easier experiences for consumers. While many people still prefer to use cash or chip and Pin, this change adds much-needed flexibility for providers and consumers.”
Jana Mackintosh, managing director of payments and innovation at UK Finance, echoed these sentiments, stating, “We welcome the FCA’s move to give banks and payment providers greater flexibility over contactless limits in the future. Contactless is a very popular and secure way to pay. While we do not expect to see any immediate change to the £100 contactless limit, any changes made in the future will be done carefully and ensure strong security and fraud controls remain in place.”
Currently, in addition to the £100 single transaction limit, there is a cumulative cap: consumers can spend up to £300 in contactless transactions, or perform no more than five consecutive contactless payments, before strong customer authentication—such as a PIN—is required. Under the new rules, firms will also have the flexibility to adjust these cumulative limits, though the FCA expects most will maintain the status quo for now.
For many, the convenience of contactless payments is undeniable. Consumer spending data from Barclays shows that in 2024, there were ten times as many contactless transactions per month as there were in 2015. The expansion of contactless payment options—such as pay-as-you-go on public transport—has only fueled this trend. But with greater convenience comes the risk of overspending. Some consumers and academics have suggested that the ease of tap-and-go, especially with credit cards, could lead to people spending without thinking, potentially racking up debt.
Ultimately, the FCA’s decision to lift the contactless card limit reflects a balancing act between innovation, consumer choice, and the need for robust safeguards. While the majority of consumers may not have asked for this change, the regulator and industry leaders believe it’s a necessary step to keep pace with modern payment habits, inflation, and technological advances. As the new rules come into effect in March 2026, all eyes will be on how banks, businesses, and consumers adapt—and whether the promise of flexibility is matched by a continued commitment to security and inclusion.