A major shift in contactless payment rules is on the horizon, set to impact UK shoppers at supermarket tills by March 19, 2026. The Financial Conduct Authority (FCA) will grant banks and card providers the authority to set their own maximum payment limits—or even remove limits entirely—without customers needing to enter their PIN.
Currently, contactless card transactions at supermarkets such as Sainsbury’s, Tesco, Aldi, Asda, Morrisons, and Waitrose are capped at £100 per payment. Shoppers whose bills exceed that must use chip and PIN verification. However, with rising food prices, the £100 limit no longer stretches as far as it once did.
Under the new FCA rules, banks and payment providers that can demonstrate strong fraud prevention will have the freedom to raise or remove these limits if they choose. Though the regulator does not expect immediate changes to the £100 cap when the rules take effect next year, this flexibility marks a significant evolution.
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Contactless payment limits have increased over time, from £10 when introduced in 2007, gradually rising through the years, reaching £100 in 2021. Notably, smartphone payments with biometric verification currently have no spending limit, highlighting a growing gap between card and mobile contactless options.
The FCA’s goal is to enable businesses to respond better to changing consumer habits, inflation pressures, and advancing payment technologies. Additionally, companies are encouraged to offer customers options to set their own contactless spending limits or disable contactless payments entirely—a feature many banks already provide.
Contactless transactions have skyrocketed in popularity. Barclays data shows that 94.6% of in-store eligible card payments in 2024 were contactless, with volumes tenfold higher than in 2015.
Beyond the per-transaction limits, there is a cumulative cap of £300 or a maximum of five consecutive contactless payments before strong customer authentication (like PIN verification) is required. The FCA’s new guidelines also allow firms to reassess this cumulative limit methodology.
The regulator believes that greater flexibility will push businesses to enhance fraud protections, ensuring consumers remain well guarded. Existing consumer protections will continue, guaranteeing reimbursement in cases of fraudulent or unauthorized use.
This review of contactless card thresholds is part of approximately 50 regulatory initiatives aimed at boosting economic growth, communicated earlier this year to Prime Minister Sir Keir Starmer.
Industry leaders have welcomed the upcoming changes. David Geale, FCA’s Executive Director for Payments and Digital Finance, said: “Contactless is people’s favoured way to pay. We want our rules to offer choice and future flexibility.”
Kate Nicholls, Chairwoman of UKHospitality, commented that lifting limits “means quicker and easier experiences for consumers,” adding that this flexibility benefits hospitality and high street businesses.
Jana Mackintosh, Managing Director of Payments and Innovation at UK Finance, echoed support for the FCA’s approach, emphasizing that any future changes will prioritize strong security measures along with greater flexibility.
As the March 2026 deadline approaches, UK shoppers and retailers alike can expect a new era in contactless payments—potentially making checkout faster, more convenient, and more adaptable to the evolving retail landscape.