FCA Reviews £100 Contactless Payment Limit, Seeks Public Input

The Financial Conduct Authority (FCA) is exploring the possibility of removing the £100 cap on contactless payments in the UK, which could significantly change how consumers make purchases. Currently, 85% of UK residents use contactless payments, and the FCA believes this is an opportunity to enhance consumer trust in the payment system. The proposal includes allowing businesses that employ advanced anti-fraud technology to set their own limits, similar to practices in the United States. While the FCA emphasizes that consumer protections against fraud will remain in place, concerns about potential vulnerabilities arise if the limit is lifted. Economic Secretary Emma Reynolds has expressed support for the initiative, highlighting the potential for increased flexibility for families. Stakeholders are encouraged to provide feedback on the proposal until May 9, 2024.