The upper limit for contactless payments could be raised to £100, the Financial Conduct Authority (FCA) has said.

Consumers have moved away from cash payments during the past year, spending more with debit and credit cards, as well as cards connected to smartphones.

The limit was previously raised from £30 to £45 just last April at the start of the Covid-19 pandemic.

Coronavirus: Contactless cap to rise from £30 to £45

“It is important that payments regulation keeps pace with consumer and merchant expectations,” the regulator said.

“Recognising changing behaviour in how people pay, as part of a wider consultation, we will shortly be seeking views on amending our rules to allow for a possible increase in the contactless limit to £100.”

The FCA is responsible for setting payments boundaries, but the card issuers themselves have the power to set the actual limits used in stores.

Nine out of 10 payments to be cashless within decade