Banks and payment providers across the UK now have the flexibility to determine their own contactless card spending limits, effective immediately. The Financial Conduct Authority has eliminated the previous £100 cap to better address inflation, technological innovations, and shifting consumer preferences. This adjustment also promotes stronger fraud prevention strategies.
Providers gain options to increase or decrease limits and alter PIN entry frequency after consecutive transactions. Leading banks including NatWest, Santander, Lloyds, Barclays, HSBC, Nationwide, and TSB confirm no plans to surpass £100 in the short term. Digital banks such as Starling and Monzo continue to evaluate their approaches.
Contactless Dominates UK Payments
Many banks already enable customers to reduce limits or deactivate contactless features through mobile apps. Barclays data reveals that 94.6% of eligible in-store card payments last year occurred via contactless. UK Finance statistics indicate it represents 67% of credit card transactions and 76% of debit card ones, with an average value just below £18.
Larger amounts remain accessible through mobile wallets using fingerprint or facial recognition. Consumer safeguards persist, including full reimbursements for fraudulent transactions.
InPost Logs Losses Despite Parcel Surge
Parcel locker operator InPost reported £20.1 million in underlying UK losses for the final quarter of 2025, reversing a £20.3 million profit from 2024. Annual parcel volumes hit a record 262.1 million, aided by the £106 million acquisition of Yodel.
The firm limited peak-period deliveries to maintain service quality rather than prioritize immediate profits. Expenses from the Yodel integration further affected outcomes.
Credit Unions Boost Access to Affordable Loans
New regulations expand credit union membership, opening cheaper loans to millions of Britons. These member-owned entities cap interest at 3% monthly, with the per-union member limit rising from 3 million to 10 million.
Changes allow inclusion of students, relatives of existing members, and ongoing full membership for pensioners, enhancing financial inclusion efforts.
Tesco Delivers Pay Rise for Thousands
Tesco announces a pay increase for thousands of store and online fulfillment center employees, negotiated with union Usdaw. Hourly rates climb to £13.28 from March 29, while the London weighting rises from £1.21 to £1.27, reaching £14.55 total.
This £200 million commitment outpaces current inflation. Tesco highlights that hourly pay for these workers has increased 43% over the past five years.
