Increase in contactless limit could rise to £100
The limit on a single payment using contactless could rise to £100, which is more than double the current limit.
It was only a few months that the limit was increased from £30 to £45.
This increase is a response to larger amounts being spent via contactless payments during the pandemic.
Commenting on the FCA possibly increasing contactless limits to £100, Luke Massie, CEO of VibePay, said:
"The move from the regulator to potentially increase the contactless limit makes complete sense as we rapidly move towards a cashless society - a trend which has been accelerated by the COVID-19 pandemic.
"However, by increasing the limit so significantly, consumers will see a rise in 'card not present' fraud, but not to the levels if this move was made during 'normal' times.
"Aside from the consumer, we will expect to see the likes of Mastercard, Visa and other major card issuers to benefit the most from this potential move. This comes at a time when Mastercard has recently increased its fees for merchants."
Industry body UK Finance has pitched the increase to the Treasury, according to the Times newspaper. The Financial Conduct Authority would also need to review and approve the change for it to take effect.
