UK Contactless Payment Rules Are Changing – Here’s What It Means for You

Contactless payments have come a long way since they first arrived in the UK in 2007. Back then, you could only tap your card for purchases under £10. Fast forward to today, and the limit has grown to £100. But that’s about to change again—and this time, it’s not just the limit that’s shifting. From March 2025, the rules around contactless payments are getting a major update that could reshape how we pay for everything from coffee to clothes.

Limits

Right now, the maximum you can spend on a single tap with your contactless card is £100. This was last increased in 2021 from the previous limit of £45. It’s been great for speed and convenience—especially as more people ditch cash and even chip and PIN. But that £100 cap has also been a sticking point for some.

Here’s the twist: the Financial Conduct Authority (FCA) is giving banks and payment providers the freedom to set their own contactless limits from March 19, 2025. That means the £100 ceiling isn’t a hard rule anymore—it’s just a guideline.

Changes

This new flexibility won’t automatically mean your bank will change your limit. The FCA says it’s up to individual firms to decide whether they want to raise, lower, or keep the limit as it is. And if they do make a change, they’re required to clearly inform you.

What’s more, banks are being encouraged to let customers take control—like setting a personal limit or switching off contactless entirely. Some major banks already offer these options through their mobile apps.

This move aims to put more power into your hands. You could one day decide, for instance, that you’re only comfortable with a £50 limit, or maybe you want no limit at all—especially if you mainly use digital wallets that don’t have a cap.

Wallets

Here’s where things get interesting. Payments made using smartphones or smartwatches—like Apple Pay or Google Pay—already have no official limit. That’s because these digital wallets usually come with additional layers of security, like biometric ID or passcodes.

So, one of the motivations behind this change is to bring physical contactless cards closer to the flexibility and security of digital wallet payments. In fact, it’s expected that this alignment will push banks to tighten their fraud controls and offer better protection for consumers.

According to the FCA, around 85% of UK residents use contactless payments at least once a month. That number’s only going to grow, so the need for flexibility and strong security is more important than ever.

Security

Naturally, more freedom means more responsibility. The FCA is placing pressure on banks to step up their fraud prevention measures. Giving firms more control over their limits only works if they also boost how they detect and block fraud.

That said, you’ll still be protected by your bank’s fraud policy if something goes wrong. And remember—you can always reduce your risk by keeping your contactless limit low or using a digital wallet that requires authentication for every payment.

Here’s a quick overview of the old rules vs. the new changes:

Feature	Current Rules	From March 19, 2025
Contactless card limit	£100 max	Set by provider
Customer-set limits	Optional (limited)	Encouraged by FCA
Contactless opt-out	Bank-dependent	Encouraged by FCA
Digital wallets (Apple/Google)	No limit	No change
Bank communication	Limited updates	Must notify customers

Reaction

The news has been welcomed by many, especially within the retail and hospitality sectors. Kate Nicholls, chairwoman of UKHospitality, called it a win for both consumers and businesses. She highlighted how the ability to pay quickly and easily is good for customer experience—and that matters in high-traffic industries like food and drink.

While cash and chip-and-PIN still have their place, contactless has become the go-to method for most people. The ability to customise your limits or disable contactless completely adds that extra peace of mind.

Outlook

Just because the FCA is opening the door doesn’t mean everyone will rush through it. Many providers are expected to stick with the £100 cap—for now, at least. They’ll likely want to test the waters and see how customers respond.

This change is part of a wider set of measures—around 50 in total—that the FCA proposed earlier this year in a letter to Prime Minister Sir Keir Starmer. These reforms aim to boost economic growth by improving consumer experiences and encouraging innovation in finance.

So if you’re tapping your card to pay next spring, don’t be surprised if things look a little different. Your bank might have new options waiting for you in your app—or even an invitation to choose your own contactless adventure.

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