The new £100 spending limit for contactless card payments will launch on 15 October, UK Finance has announced.

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.

The limit was first increased from £30 to £45 in April 2020.

From 15 October 2021, consumers will start to see retailers accepting contactless payments up to the new £100 limit.

The trade association said that 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.

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

Postings added: "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."

Chancellor Rishi Sunak said that increasing the contactless limit would make it "easier than ever to pay safely and securely."

"...whether that’s at the local shops, or your favourite pub and restaurant," added Sunak. "As people get back to the High Street, millions of payments will made be simpler, providing a welcome boost for retailers and shoppers.”

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