The spending limit on contactless card payments is to rise from £45 to £100 from next Friday.

The decision to raise the contactless limit from £45 to £100 was made by HM Treasury and the Financial Conduct Authority following a public consultation and in discussion with both the retail and banking sectors. It follows on from the increase in the limit from £30 to £45 in April 2020 during the coronavirus pandemic.

From Friday 15th October 2021, consumers will start to see retailers accepting contactless payments up to the new £100 limit, which will give customers more flexibility when shopping in store.

However, given the number of terminals which will need to be updated to accept the new limit, it will take some time to be introduced across all retailers.

David Postings, Chief Executive of UK Finance, said: “Contactless payment has proved very popular with consumers and an increasing number of transactions are being made using contactless technology.

“The increase in the limit to £100 will allow people to pay for higher value transactions like their weekly shop or filling up their car with fuel. The payments industry has worked hard to put in place the infrastructure to enable retailers to update their payments systems so they can start to offer their customers this new higher limit.”