Contactless payment rules could be shaken up as part of wider moves to boost economic growth.
The contactless card payment limit has been raised several times over the years, and is currently £100. Over that, cards need a PIN.
The Financial Conduct Authority (FCA) sent a letter to the Government on the steps it is taking, and those it could take, to support economic growth.
In the letter, FCA chief executive Nikhil Rathi said that the regulator could "remove the £100 contactless limit, allowing firms and customers greater flexibility, drawing on US experience, and levelling the playing field with digital wallets”.
Recommended reading:
- DWP benefits rise - how much and when do they go up?
- Warning issued to travellers over phone mistake that could cost thousands
- Subscriptions cutbacks that could save you hundreds
The FCA said another step it could take would be to set new digital service standards, for example requiring firms to accept electronic verification of death to speed up bereavement claims in insurance.
It also wants to make it easier for businesses to start up and grow.
The regulator said it could indicate more frequently that “we are ‘minded to approve’ promising start-ups to help them secure funding”.
But Rocio Concha, Which? Director of Policy and Advocacy, warned against viewing consumer protections as barriers to growth.
She said: “The Financial Conduct Authority and government are right to explore ways to boost economic growth, and Which? would never stand in the way of cutting unnecessary red tape. However, viewing consumer protections as a barrier to economic growth is misguided.
“Well designed regulations that empower consumers to switch from bad to good products and services which give them the confidence to try new products and services without the fear of being ripped off are essential to creating dynamic markets that reward investment and innovation.”
Share