Tap or Cap? What Consumers Really Think About Removing the £100 Contactless Limit

Contactless payments have revolutionised how Brits pay for everyday purchases. From groceries to dining out, tapping a card or phone is now second nature for millions. But with the Financial Conduct Authority (FCA) proposing a radical change – allowing banks and card providers to remove the £100 cap on contactless card payments or set their own limits – consumers are being asked to weigh the convenience of frictionless spending against the risks of theft and loss of control.

We surveyed 500 UK adults to understand their views on this potential change, including how often they use contactless, how secure they feel, and what controls they’d like to see in a future without caps.

Quick Summary

• 77% of UK consumers use contactless card payments at least weekly
  
• Only 45% were aware of the FCA’s proposal to remove the £100 limit
  
• 53% feel positive about removing the limit, while just 20% are opposed
  
• The most popular option (51%) is for individuals to set their own limit
  
• 61% worry cards would become more valuable to steal without a limit
  
• Preferred safeguards include setting personal limits (50%), receiving instant notifications (49%), and requiring extra authentication (49%)
  

Contactless is the new normal

Contactless payments have moved from novelty to necessity in record time. Today, 77% of UK consumers use contactless at least weekly, with 30% using it daily. The most common purchases made via contactless are groceries (86%) and dining out (73%), clearly signalling that it’s firmly embedded in everyday routines.

The rise of mobile wallets has further accelerated the shift to contactless. With 75% of respondents using services like Apple Pay or Google Pay, smartphone wallets are now as mainstream as credit cards, which are held by 65% of respondents. Among younger consumers, smartphone wallets have overtaken debit cards as the most-used payment method. 

Currently, there’s no upper payment limit for mobile wallets – you can make payments above £100 without needing to enter a PIN. However, device payments are typically protected by biometric authentication (such as fingerprint or facial recognition), reducing the risk involved.  

Support for change – but with conditions

The majority of consumers (64%) are aware of the existing £100 limit on contactless card payments, but only 45% of respondents to our survey had heard about the FCA’s plan to scrap it. While knowledge of the proposed changes is limited, sentiment is generally positive: 53% of consumers feel good about the potential removal of the £100 cap (27% somewhat positive, 26% very positive), this is driven by feelings of greater convenience, speed, and flexibility when they are shopping. Just 20% are against it. However, this support is not without caveats.

When asked what they’d prefer, most consumers (51%) said they’d like to set their own transaction limit. Only 33% want to keep the £100 limit in place. Importantly, support for personalisation cuts across all age and income groups, though it’s most popular among younger adults (58% of 18-30 year olds).

Still, security is top of mind. 61% of consumers are concerned that cards would become more valuable to steal if limits are removed, while 40% worry about overspending. To address this, half want to set per-transaction limits, 49% want instant notifications when a contactless payment is made, and another 49% want PIN or biometric authentication for larger purchases.

Notably, only 23% favour daily or weekly spending caps, suggesting consumers prefer targeted, flexible security over blanket restrictions.

Attitudes vary by age, gender and income

Support for removing the limit is far stronger among younger consumers. Just over 65% of 18-30 year olds are positive about the change, compared to just 37% of those aged 50-67. Older adults are more than twice as likely to have negative feelings about the change (29% vs 11%), largely due to theft concerns.

Despite using contactless more often, younger people are also less aware of the current £100 limit and proposed changes. Only 47% of 18-30s correctly identified the limit, compared to 75% of those aged 50-67.

There are also clear gender differences. Men are more likely to be aware of the FCA proposal (49% vs 42% for women) and are slightly more in favour of removing the limit (55% positive vs 50%). Men are also more likely to favour customisable security features such as setting personal limits (56% vs 43%).

Income plays a role, too. High earners (£75k+) are more likely to be positive about removing the cap: 47% say they would feel ‘very positive’ about it, versus only 19% of those with a household income below £35k. Lower-income respondents are more concerned about overspending and more likely to prefer keeping the current limit in place.

What this means for financial services brands

The future of contactless isn’t just about convenience, it’s also about control. Consumers are comfortable tapping to pay, but they want the freedom to define how that works for them. Financial services brands that offer customisable limits, real-time alerts, and secure authentication options will be able to strike the right balance.

Awareness campaigns will also be critical. With nearly half of consumers unaware of such a significant regulatory proposal, brands have an opportunity to educate their customers and position themselves as transparent, consumer-first providers.

Crucially, 56% of consumers believe banks are ultimately responsible for preventing fraud on contactless purchases, and 53% say the same of card providers like Visa and Mastercard. This underscores the need for brands to take a proactive role in fraud prevention and clearly communicate what protections are in place.

Ultimately, contactless is only going to become more prevalent, and with the right tools in place, consumers are ready to tap into the next phase of digital payments.