Overview

• The Financial Conduct Authority (FCA) has concluded its public consultation on the £100 contactless payment limit, which ended on May 9, 2025.
• A final decision on whether to raise or remove the cap is anticipated later in 2025 as part of broader efforts to modernise the UK's payment system.
• Consumer protections, including mandatory refunds for fraudulent transactions, will remain in place regardless of the outcome.
• Retailers have broadly supported the potential change, citing benefits such as shorter queues and faster transactions, while some consumer advocates raise concerns about fraud risks.
• The review aligns with international practices, particularly in countries like the United States, where no contactless payment cap exists.