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ARTICLE · 25 SEPTEMBER 2025

FCA Consults On Removing Contactless Payment Limit

Lewis Silkin
Lewis Silkin
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Lewis Silkin

Lewis Silkin

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Back in March 2025, the FCA published an engagement paper about contactless payments. It set out several ways in which the FCA could approach contactless payment limits in the future...

United KingdomFinance and Banking
Wendy Saunders
Wendy Saunders
Helen Hart
Helen Hart
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Back in March 2025, the FCA published an engagement paper about contactless payments. It set out several ways in which the FCA could approach contactless payment limits in the future, to give greater flexibility to PSPs, consumers and businesses to decide limits which work for them, while still reducing the risks of fraud. The FCA says it received a lot of feedback and has now launched a formal consultation.

In summary, the FCA wants to remove regulatory contactless limits and instead allow banks and other payment service providers to deliver contactless payments if they identify that a transaction poses a low level of risk.

Currently, the FCA sets regulatory limits on the value and number of contactless payments that can be made before requiring authentication, typically via a personal identification number (PIN) entry. These requirements are set out in an exemption to the Strong Customer Authentication (SCA) requirements in the Payment Services Regulations 2017

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