Good news, one thing Britain leads the world in, payments systems….
£100 contactless spending limit to be axed from next year
Banks and cardholders will be able to set their own cap from March in a move that could be convenient for shoppers and thieves alike
Shoppers will be able to spend unlimited amounts by tapping their card from March.
The Financial Conduct Authority (FCA), the City regulator, said removing the £100 limit on contactless transactions would be more convenient and give shoppers, banks and credit card companies the ability to set their own limit. However, experts have warned it could lead to more fraud and theft.
The contactless card limit has risen steadily since the payment method was introduced in 2007, starting at £10 and reaching £30 in 2015, then jumping to £45 in 2020 and £100 in 2021. The new rules will give banks and card companies the power to set their own maximum spend, or remove the limit altogether.
About 39 per cent of all payments were made using contactless cards last year, according to UK Finance, the banking trade association, up from 21 per cent in 2019 and just 3 per cent in 2015. Cash transactions declined to 9 last year, down from 23 per cent in 2019.
Smartphone contactless payments, such as Apple and Google Pay, have also become more common, with 57 per cent of adults using them last year, up from 42 per cent in 2023. There is no limit for these payments because they require a passcode, or fingerprint or facial recognition.
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Good news, one thing Britain leads the world in, payments systems…....[more]