Banks To Have Greater Flexibility When Setting Future Contactless Limits

According to the FCA, consumers are using contactless as the go-to way to pay. Research by Barclays found that almost 95% of all eligible in-store card transactions were contactless in 2024.

Back in September we wrote that the FCA was consulting on removing regulatory contactless limits and instead allowing banks and other payment service providers to deliver contactless payments if they identify that a transaction poses a low level of risk.

It has now announced the outcome of the consultation. Banks and payment providers with strong fraud controls will be able to set their own limit for contactless payments.

They are also being encouraged to let customers set their own limit, or turn contactless off altogether, as many high street banks already do.