Rishi Sunak will more than double the limit of contactless cards and phones to £100 today as he attempts to boost the economy after lockdown.
The changes will see the legal single contactless payment limit raised from £45 to £100.
It is the second rise on contactless payments which went up from £30 to £45 last spring.
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The move comes after a rise in popularity of contactless payments following the global outbreak of Covid-19, with shoppers and retailers opting to avoid using cash in an effort to curb transmission of the virus.
The Government said the change has been made possible by the UK’s exit from the European Union, which means we are no longer bound by EU rules on the maximum limit for contactless payment, which is currently set at £45.
Mr Sunak 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.”
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At the start of the Covid-19 pandemic, four out of 10 debit card payments were made using contactless. That rose to six in 10 by September last year.
Mr Sunak is expected to start his speech at around 12.30pm today, immediately after Prime Minister’s Questions.
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