Banks and payment providers across the UK gain flexibility to establish their own contactless card spending limits beginning today. The Financial Conduct Authority (FCA) eliminates the previous £100 cap to address inflation, advancing technology, and evolving consumer behaviors. This move aims to enhance fraud prevention measures while allowing providers to adjust limits upward or downward and modify PIN entry requirements after multiple transactions.
Major Lenders Hold Steady
Key lenders such as NatWest, Santander, Lloyds, Barclays, HSBC, Nationwide, and TSB confirm no immediate increases beyond £100. Digital banks like Starling and Monzo continue to evaluate options. Many institutions already enable customers to reduce limits or disable contactless payments via mobile apps.
Contactless Dominates Transactions
Contactless payments represent 94.6% of eligible in-store card transactions last year, according to Barclays data. UK Finance reports indicate they comprise 67% of credit card and 76% of debit card transactions, with an average value under £18. Larger amounts remain possible through mobile wallets with biometric verification like fingerprints or facial recognition. Fraud reimbursement protections stay intact for consumers.
InPost Reports Christmas Losses Despite Record Volumes
Parcel locker operator InPost recorded underlying losses of £20.1 million in the UK during the final quarter of 2025, compared to a £20.3 million profit in 2024. The company limited peak-time deliveries to maintain service quality over short-term gains. Additional costs from its £106 million acquisition of Yodel impacted results. Parcel volumes still reached a record 262.1 million for the year, boosted by the Yodel integration.
Credit Unions Expand Access to Affordable Loans
Reforms to credit union regulations open cheaper loans to millions more Britons. These member-owned entities cap interest at 3% per month. Locality-based unions now serve up to 10 million members, up from three million. They can also include students, relatives of members, and retain pensioners as full members to promote financial inclusion.
Tesco Raises Hourly Pay for Thousands of Workers
Tesco agrees to increase pay for store and online fulfilment centre staff in partnership with union Usdaw. Rates rise to £13.28 per hour starting March 29, with the London weighting allowance climbing from £1.21 to £1.27, resulting in £14.55 hourly there. The £200 million investment exceeds current inflation and reflects a 43% rise in hourly pay over five years.
