The Financial Conduct Authority (FCA) is now consulting industry and other bodies about raising the contactless card payment limit to £100, amid the ongoing pandemic and a continuing surge in the number of contactless payments being made.

The move would more than double the limit from the current £45, which was raised from £30 less than a year ago.

Contactless transactions are safer and quicker to complete than cash, although lost cards with bigger limits on them could increase the scale of potential fraud.

A number of shops however have already stopped taking cash to help stop the spread of the virus.

The FCA said: “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.”

It added: “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.”

The latest figures from industry body UK Finance show that the proportion of contactless payments fell slightly compared with pre-pandemic levels, mainly because lockdown measures hit contactless use in pubs, restaurants and across public transport.

Contactless payments now account for 41 per cent of card transactions. But there was a 16 per cent increase in the total value of contactless payments in the UK last October, compared with the same month a year earlier.

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