Sat, 13 Sep 2025

Sat, 13 Sep 2025 Unlimited contactless cards may lead to spending sprees

Spontaneous spending is likely to rise if the £100 limit on contactless cards is scrapped, academics say.
Research shows that nearly 95% of eligible transactions were made via contactless payment methods in 2024, with many consumers paying through digital wallets on their smartphones, which have unlimited payment limits due to security features like fingerprints or face ID. The UK's financial regulator has proposed allowing banks and card providers to set their own limits or remove them entirely. Some argue that this would be an outdated approach given the widespread use of digital wallets, but others express concerns over the potential for increased reckless spending and economic abuse. Banks agree with the proposal and suggest allowing customers to set their own thresholds or turn off contactless payments on their cards. However, some experts warn that not everyone has the digital skills to set their own limits, which could exacerbate issues like economic abuse. The issue is set to be decided later in the year, with the UK's position potentially moving closer to other advanced economies where industry sets payment limits rather than regulators.
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