Chancellor Rishi Sunak has said that the limit on contactless payments is set to rise from £45 to £100.
The UK has been able to change the limit as a result of leaving the European Union, which limits contactless payments to €50, or around £45 in member states.
Contactless payments are where people can pay using their card or mobile device without needing to enter their PIN number. According to the Treasury, 8 out of 10 adults in the UK used contactless payments in 2019.
The increase to the limit in the UK comes following a public consultation held by the Financial Conduct Authority. The change will legally come into force from today, but banks and some businesses will need to make changes to their systems before the limit is increased in practice.
Those using Apple Pay, Google Pay and similar technologies will be able to make contactless transactions of £100 where their bank or the business they are using adopts the new limit. Many stores already have a limitless ‘tap-to-pay’ system, though some devices may request authentication for particularly large transactions or unusual activities.
Full details of the plan are set to be announced in today’s budget, due to presented by the Chancellor in the House of Commons around 12:33pm.
