PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

UK Banks Wary as Contactless Payment Limits Are Lifted

By Tom Nawrocki
March 16, 2026
in Analysts Coverage, Debit
0
0
SHARES
0
VIEWS
Share on LinkedIn
illinois interchange fee

Waitress holding credit card reader machine and wearing protective disposable gloves at bar counter with client holding credit card. Man paying bill with credit card. Hand of customer paying with contactless credit card with NFC technology.

The UK’s £100 limit on contactless payments is being scrapped this week, potentially allowing shoppers to tap for purchases of any size. But whether consumers will actually be able to do so depends on their banks—many of which appear reluctant to loosen the cap.

Currently, any contactless purchase above £100 is automatically converted into a chip and PIN payment. Allowing higher-value taps could expose banks to larger instances of fraud, so payment providers will need robust monitoring and security measures in place before lifting the cap.

Contactless payments have already become the dominant way UK shoppers pay in stores. According to Barclays, 94.6% of eligible in-store card purchases were contactless in 2024, suggesting that expanding tap-to-pay capabilities could benefit many players in the payments ecosystem.

“It’s a win for card issuers and certainly networks like Visa and Mastercard who are still very much tied to physical card products,” said Ben Danner, Senior Analyst of Debit at Javelin Strategy & Research. “It’s more convenient for those wishing to use a physical tap to pay. However, fraud monitoring will continue to be extremely important.”

Banks Likely to Keep Limits

Early indications show banks are wary of the added responsibility. While the elimination of the cap was announced in December, the UK’s Financial Conduct Authority (FCA) said feedback indicated that most banks and payment service providers are likely to maintain their existing contactless limits for the foreseeable future.

“I expect banks to still implement some type of trigger controls, especially for flagged transactions or payments that look suspicious,” said Danner. “However, it does encourage larger value physical card use more.”

No Caps on Mobile Phones

The £100 cap has applied only to physical cards, which typically require a four-digit PIN for higher-value transactions. Mobile payments, by contrast, have no such limits because devices usually rely on built-in authentication such as PINs or biometrics.

Data from UK Finance found that more than half of UK adults surveyed now use mobile wallets for both online and in-store purchases. Although physical cards lack these built-in defenses, consumers are protected because card issuers must reimburse funds in cases of fraudulent use.

0
SHARES
0
VIEWS
Share on LinkedIn
Tags: BarclaysContactless PaymentsFCATap to PayUK

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    stablecoins in banking

    As Stablecoins Mature, Financial Institutions Face a Crossroads

    October 22, 2026

    Automation to Accountability: Governing AI in Fraud and Disputes 

    October 21, 2026
    google solana agentic

    Agentic Commerce Is Still Hype Ahead of Reality

    October 20, 2026
    Customer, shopping and credit card for florist shop payment with POS machine or phone for sale of flowers at small business. Hands of woman paying with rfid technology for service at retail store.

    As Rewards Programs Face Pressure, Card-Linked Offers Gain Ground

    October 19, 2026
    ai spend

    Escalating AI Spend Is Prompting a Strategic Recalibration

    October 16, 2026
    bank chatbot

    How Banks Can Nail the Handoff from Chatbots to Human Agents

    October 15, 2026
    diagonal payments solutions

    The Next Evolution in Payments: Diagonal Thinking

    October 14, 2026
    Mikko Kahkonen

    Making Physical Cards Matter in a Digital World 

    October 13, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result