Shoppers across the UK could soon see changes to the way they pay at tills after the Financial Conduct Authority (FCA) confirmed plans to scrap the national limit on contactless card payments from Thursday. Currently, shoppers can spend up to £100 in a single contactless transaction, but the regulator says it will remove the cap and instead allow banks such as Lloyds, HSBC and Barclays and payment providers to set their own limits.

The move means some customers may be able to tap and pay for much larger purchases, depending on the rules set by their bank or card provider. Under the new approach, firms will be able to decide their own contactless limits based on factors such as fraud protection, spending patterns and security checks. David Geale, executive director of payments and digital finance at the FCA, said: “Contactless is people’s favoured way to pay. We want to make sure our rules provide flexibility for the future, and choice for both firms and consumers.”

Many retailers already accept contactless payments for everyday purchases, and the technology has grown rapidly in popularity since the limit was raised from £45 to £100 during the pandemic.

Kate Nicholls, chair of UKHospitality, said: “Making life easier for consumers is a positive for any hospitality and high street business, and I’m pleased the FCA is bringing forward this change.

“Contactless has increasingly become the preferred payment method of choice for many people and lifting the limit can mean quicker and easier experiences for consumers.

“While many people still prefer to use cash or chip and PIN, this change adds much-needed flexibility for providers and consumers.”

Despite the removal of the nationwide cap, banks are expected to continue using fraud detection systems and occasional PIN checks to verify larger purchases.

Consumer groups say the change could make shopping faster and more convenient, but some have warned it may also increase the risk of fraud if cards are lost or stolen.

The FCA said firms must ensure that customers remain protected and that payment systems include appropriate security measures before introducing higher limits.

The move is one of around 50 measures that the regulator outlined in a letter to the Prime Minister in January to support economic growth and prioritise digital solutions.