What will happen now the £100 contactless card limit has been scrapped?

The UK has officially removed the £100 limit on contactless card payments, allowing banks to establish their own spending restrictions. This change, effective from March 19, 2026, comes as part of efforts by the Financial Conduct Authority (FCA) to adapt to evolving consumer needs, inflationary pressures, and advancements in technology.

The FCA's decision aims to enhance flexibility for banks, enabling them to respond more effectively to market demands. As a result, consumers may soon see varying limits set by different financial institutions, which could lead to a more tailored banking experience. This move is expected to facilitate larger transactions through contactless payments, reflecting a growing trend towards digital and cashless transactions.

The removal of the limit is anticipated to benefit both consumers and businesses, as it may simplify payments for higher-value purchases and reduce the need for cash handling. However, it also raises questions about security and consumer protection, as higher limits could increase the risk of fraud.

As banks implement these changes, customers are encouraged to stay informed about their individual bank's policies regarding contactless payments.

Source: www.theguardian.com – https://www.theguardian.com/money/2026/mar/19/contactless-card-100-pound-limit-scrapped