The financial regulator has announced upcoming changes to contactless payment card limits, impacting millions of shoppers. Currently capped at £100, contactless transactions above this threshold typically require a four-digit PIN. However, starting March 19, 2026, banks and payment providers will have the liberty to establish their own limits.
Additionally, companies are being urged to offer customers the option to set personalized limits or deactivate contactless functionality entirely. While many card issuers already permit users to adjust their contactless cap or disable it, the current regulations allow multiple sub-£100 contactless payments per day, with a PIN prompt if cumulative spending exceeds £300.
The new flexibility will also enable firms to reconsider these rules. Initially proposed in a letter to the Prime Minister in January, the Financial Conduct Authority’s suggestions underwent public consultation until mid-October.
Since its inception at £10 in 2007, the contactless limit steadily increased to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020, and finally £100 in 2021. The FCA estimates that 85% of UK residents utilize contactless payments monthly.
David Geale, the FCA’s executive director of payments and digital finance, emphasized the importance of adapting regulations to cater to evolving preferences. UKHospitality’s chairwoman, Kate Nicholls, praised the change for enhancing consumer convenience and expediting transactions, especially in the hospitality and retail sectors.
Jana Mackintosh, managing director of payments and innovation at UK Finance, welcomed the FCA’s decision to grant more flexibility to banks and payment service providers regarding contactless limits. While the £100 cap is unlikely to change immediately, any future adjustments will prioritize robust security and fraud prevention measures.