Contactless card payments are set to exceed £100 and potentially become unlimited under new proposals to allow banks and other providers to set limits.
The proposals from the Financial Conduct Authority (FCA) mean entering a four-digit PIN to make a card payment could become even more of a rarity for shoppers.
If approved, purchases which can cost more than £100 – such as a big supermarket shop, or large family meal in a restaurant – could be made with a tap of a card.
The move would bring cards in line with payments made through digital wallets on smartphones which have no restriction, and reflects the ongoing changes in the way people pay.
When contactless card payments were introduced in 2007, the transaction limit was set at £10. The limit was raised gradually, to £15 in 2010, to £20 in 2012, then to £30 in 2015, before the Covid pandemic prompted a jump to £45 in 2020, then to £100 in October 2021.
If approved, the latest plan could be put in place early next year.
Every rise has been met with concerns about theft and fraud, and the FCA said card providers would only permit higher-value contactless payments for low-risk transactions and would carry the burden if things went wrong.
However, the freedom for banks to raise or even scrap the contactless limit suggests the four-digit PIN could soon become relatively redundant.
The FCA has proposed the changes, despite the majority of consumers and industry respondents to a consultation favouring the current rules.
Some 78 per cent of consumers who responded said they did not want any change to the limits.
The FCA said it did not expect any quick changes, but providers would welcome the flexibility over time when prices rise and technology advances. They could also give customers the option to set their own limits. (BBC)
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