The contactless payment limit could soon more than double, rising to £100, if the Financial Conduct Authority (FCA) decides on a proposed change in the rules.
Demand for contactless payments has risen dramatically during the coronavirus pandemic, with consumers sidelining traditional cash in favour of touch-free transactions.
Less than 12 months have passed since the initial rise in the contactless limit, which went from £30 to £45 back in April allowing greater freedom for consumers paying by card or with their smartphones.
Businesses have found offering the convenience of contactless payments hugely useful. Most shops and other retail outlets now offer touch-free payment, removing the need to manually enter a PIN code, touch a POS terminal or handle conventional cash.
The lifting of the previous limit was pushed through to help protect workers and consumers alike, although the continued closure of many outlets including pubs, restaurants and gyms has resulted in a dip in the overall use of contactless.
However, new data from UK Finance, which represents the banking sector, indicates that the overall value of contactless payments went up by 16% in October, compared to the same month a year earlier.
Following today’s proposal the FCA has said it will publish more detailed plans shortly.