The Financial Conduct Authority (FCA) announced on Friday it was looking for opinions on scrapping the contactless card limit and whether changes could benefit the UK economy.

The current cap prohibits customers from making contactless card payments of more than £100 – however, the rule is set for review in a bid to boost growth. 

This follows the FCA’s letter to Prime Minister Keir Starmer in January, where the regulator outlined plans to remove ‘unnecessary regulation’ to aid the Government’s economic ambitions.

85 per cent of people in the UK make contactless card payments each month, according to the FCA.

The regulator said: “Families and businesses across the country could benefit from greater choice, flexibility and smoother purchases”.

It stressed any changes made must meet Consumer Duty guidelines that the regulator uses to foster positive outcomes.

Changes could be a ‘win-win’ for consumers and economy

Founder of UK fintech firm Pockit and Monese chief executive, Virraj Jatania, welcomed a “responsible increase in the upper limit” and added it could be a “win-win for both consumers and the wider UK economy.”

However, Jatania told City AM the positives come “with an important caveat”.