The Government is set to raise the contactless card spending limit from £45 to £100 from 15 October 2021.
Initial plans for the change were first announced in March’s budget announcement, and follow the increase from £30 to its current level at the start of the pandemic.
The decision has been made by the Financial Conduct Authority (FCA) and Treasury, following a consultation with both the retail and banking sectors.
The new £100 limit would represent a ten-times rise from the initial £10 block put in place when contactless payments were first introduced in 2007. Since then, the limit has been gradually increased, to £20 in 2012 and then £30 in 2015.
Chancellor Rishi Sunak said: “Increasing the contactless limit will make it easier than ever to pay safely and securely – whether that’s at the local shops, or your favourite pub and restaurant.
“As people get back to the high street, millions of payments will be made simpler, providing a welcome boost for retailers and shoppers.”
However, the increase has raised concerns about potential crime, with fraudsters soon able to spend £100 without the need for a pin.
Laura Suter of fund shop AJ Bell told The Telegraph: “While the move brings more convenience for some, it is a thief’s dream, as they can take far more of your money in each transaction if your card is lost or stolen.
“By spending £100 a pop without having to put in a pin, it would be very easy for thieves to blitz through money quickly before you even spotted the card had been stolen.”