Contactless payment limit could rise to £100
Contactless payments have increased over the course of the pandemic with latest figures revealing they accounted for 64% of all debit card transactions in September.
For credit cards, four in ten transactions are now contactless.
The contactless limit was increased from £30 to £45 in April 2020 and now the regulator, the Financial Conduct Authority (FCA) said it will launch a consultation on increasing the contactless limit to £100.
Its statement read: “Since the limit for contactless card payments was raised to £45 last April at the start of the pandemic, people are increasingly making use of contactless payments.
“It’s important that payments regulation keeps pace with consumer and merchant expectations.
“Recognising changing behaviour in how people pay, as part of a wider consultation, we will shortly be seeking views on amending our rules to allow for a possible increase in the contactless limit to £100.”
It comes as research revealed one in three people have been blocked from using cash to make payments since the start of the pandemic in March.
At the time, the World Health Organisation (WHO) encouraged people to use digital payment methods instead of cash.
However, campaign groups have voiced concern over the move towards a cashless society which would harm the elderly and vulnerable who still rely on cash to make payments.
Further, the Bank of England provided clarity about the safety of cash use during the pandemic, with research finding that Covid-10 doesn’t survive on banknotes for very long.