Should the Limit on Contactless Payments Be Scrapped? | Foundation for Economic Education

Reem Ibrahim writes for the Foundation for Economic Education

Across the world, contactless payments are revolutionizing daily transactions. Through the tap of your card or the wave of your smartphone, contactless payments have allowed consumers to pay for goods and services in a convenient, quick, and secure way.

In 2021, Rishi Sunak (prior to his 2022–2024 premiership) announced that the limit for contactless payments would rise from £45 to £100. The Financial Conduct Authority (FCA) suggested that scrapping the contactless cap altogether could give businesses greater flexibility and boost the economy as a whole.

A record 93.4% of all in-store card transactions up to £100 were made with “touch and pay” in 2023. And it certainly isn’t just young people that are enjoying the convenience of contactless payments. According to Barclays, the percentage of active users between the ages of 85 and 95 crossed 80% for the first time in 2023, and for the third year in a row, over-65s were the fastest growing group for contactless usage.

Read the full article at the FEE here