The Chancellor has announced that he will tear up the EU’s rule of only allowing £45 contactless limit on cards across all member states, and will raise this to £100 for Brits.
Taking advantage of Brexit and the UK’s freedom from the bloc, the legal limit of £45 has now more than doubled, in the hope this will provide a boost for jobs and the high street.
Ahead of the Budget, the Chancellor said, “As we begin to open the UK economy and people return to the high street, the contactless limit increase will make it easier than ever before for people to pay for their shopping, providing a welcome boost to retail that will protect jobs and drive growth across the capital.”
The £100 rule will come into effect from today, but will take time for the changes within banking and the retail sector to implement the new contactless limits on cards.
Reacting to the news that the Chancellor has increased the limit for contactless payments to £100 in his Budget today, Vincent Choi, CEO of payments provider Pomelo Pay, said: “We are delighted that the Chancellor Rishi Sunak has decided to increase contactless payment limits to £100. This should be seen as a win-win since this decisive move supports businesses which have quickly embraced technological solutions to survive and thrive during the pandemic, while helping consumers stay safe by limiting the number of transactions they have to manually enter their pin for.”