The Financial Conduct Authority (FCA) has announced the scrapping of the £100 cap on contactless payments, but despite this move banks have confirmed they will not introduce unlimited spending limits.
Representatives from the banking lobby group claimed that lenders are holding off making changes as there is currently no widespread consumer demand for increased payment limits.
The decision to keep the £100 limit in place may be of particular concern for households managing their finances, who face rising energy, food and housing costs. The FCA's decision will not directly impact household bills, but it could have implications for those struggling with money management.
Households are currently dealing with the impact of inflation on essential expenses such as energy bills, groceries, and rent/mortgage payments, and this move may add to their financial burden.