Contactless card limit rising to £100

The maximum amount was increased from £30 to its present level when the pandemic began, and plans to raise it again were indicated in the Budget.

Nearly two-thirds of all debit card transactions are now made with tap-and-pay technology.

When contactless card payments were introduced in 2007, the transaction limit was £10.

Cards were used in this way in place of small change when buying snacks, papers and occasional groceries.

The limit has gone up gradually, to £20 in 2012, then to £30 in 2015.

The pandemic encouraged a move away from cash, with shoppers asked to use contactless in many stores to reduce contact with staff.

It meant the government and industry hurriedly increased the limit to £45 and announced plans to raise it again to £100.

Banks say that will allow people to pay, without the need for a pin, when filling up with petrol or for weekly food shopping trips.

Because terminals will need to be updated to accept the new limit, it is expected to take some time for the £100 limit to be installed by all retailers.