Starting in 2026, shoppers at major UK supermarkets such as Tesco, Asda, Sainsbury’s, Aldi, Morrisons, and Lidl may soon be able to spend above the current £100 contactless payment limit. The Financial Conduct Authority (FCA) has introduced new regulations that allow banks and payment providers to set their own contactless card limits, provided they maintain strong fraud protections.
This change comes amid rising food prices driven by factors including global conflicts, which have pushed many grocery bills beyond the traditional contactless threshold. Consumer groups like Which? have highlighted the impact of inflation on grocery costs, making the ability to tap and pay for higher amounts a welcome convenience for shoppers.
While the FCA does not expect immediate adjustments by card providers, it grants them the flexibility to raise limits when they choose. Some banks, including Lloyds and Santander, already offer customers the option to adjust their contactless limits in increments of £5, up to £100.
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A spokesperson from the FCA emphasized the intention behind the new rules: “We want to make sure our rules provide flexibility for the future, and choice for firms, merchants and consumers.” The FCA also reassured consumers that enhanced fraud controls and ongoing improvements in payment technology will continue to protect users.
Kate Nicholls, chairwoman of UKHospitality, welcomed the changes, stating, “Making life easier for consumers is a positive for any hospitality and high street business. Contactless payments have become the preferred method for many, and lifting the limit can mean quicker and easier experiences for consumers. While alternatives like cash and chip and pin remain popular, this update adds significant flexibility for both providers and customers.”
Consumers are advised to check with their banks regarding their current contactless payment limits, as these may vary and could change under the new rules.