Banks push for UK to increase contactless limit to £100

In the wake of Brexit, banks are pushing the UK government to increase the contactless payments limit to £100, breaking with an EU cap of £45.

Industry body UK Finance has pitched the increase to the Treasury, according to the Times newspaper. The Financial Conduct Authority would also need to approve the change.

The limit was only raised from £30 to £45 in April, partly in response to the Covid-19 pandemic, which has prompted a surge in tap and pay at the expense of cash.

In September, contactless accounted for 64% of all debit card transactions and 46% of credit card transactions, according to UK Finance.

Contactless payments first arrived in the UK in 2007, with a £10 ceiling which has been gradually increased over the last decade.