The Treasury has confirmed that the limit on a single payment using contactless cards will rise to GBP 100 in 2021.
According to The Guardian, the limit on contactless card payments was increased to GBP 45 in 2020 as retailers sought ways to cut the need for physical contact in shops amid the pandemic, and in January 2021 plans were announced to more than double it.
Although the initiative will bring contactless card payments up to speed with other methods with no limits, such as Apple Pay, consumer advocates are concerned that millions of shoppers who rely on cash are being left behind. Besides, banks and payment providers have warned about the potential for more fraud under the increased limit. Even though the higher limit was confirmed by the Treasury, systems will need to be changed, thus shoppers will not notice the difference until later 2021.
Overall, the Treasury stated that the change was made possible by the UK’s departure from the EU, which meant the country was no longer bound by a GBP 45 limit.
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