Banks and payment providers gain flexibility to establish their own contactless card spending limits beginning today. The Financial Conduct Authority’s move to eliminate the existing £100 cap aims to address inflation, advancing technology, and evolving consumer behaviors. Regulators expect this adjustment to prompt stronger fraud safeguards.
Providers now have the option to adjust limits upward or downward and modify the frequency of PIN requirements after multiple transactions. Major lenders such as NatWest, Santander, Lloyds, Barclays, HSBC, Nationwide, and TSB confirm no immediate increases beyond £100. Digital banks like Starling and Monzo continue to evaluate their positions.
Contactless Payments Dominate UK Retail
Customers already access options through banking apps to reduce personal contactless limits or disable the feature entirely. Barclays reports that 94.6% of eligible in-store card payments last year occurred via contactless methods. Industry data reveals contactless transactions comprise 67% of credit card use and 76% of debit card activity, with an average value just under £18.
Larger amounts remain possible through mobile wallets with biometric verification like fingerprints or facial recognition. Fraud reimbursement protections for consumers stay intact under current rules.
InPost Reports Losses Despite Record Parcel Volumes
Parcel locker operator InPost recorded underlying losses of £20.1 million in the UK during the final quarter of 2025, compared to a £20.3 million profit in 2024. The company prioritized service quality by limiting peak-time deliveries over pursuing short-term gains. Additional pressures stemmed from its £106 million acquisition of Yodel. Parcel volumes still reached a record 262.1 million for the year, boosted by the Yodel integration.
Credit Unions Expand Access to Affordable Loans
Millions of UK residents stand to benefit from revised credit union regulations, enabling cheaper borrowing options. These member-owned institutions maintain a 3% monthly interest cap. Local unions can now serve up to 10 million members, up from three million. Reforms also permit inclusion of students, relatives of members, and retention of pensioners as full participants to enhance financial inclusion.
Tesco Increases Hourly Pay for Thousands of Workers
Tesco raises wages for staff in stores and online fulfillment centers to £13.28 per hour starting March 29, following negotiations with the Usdaw union. The London weighting allowance rises from £1.21 to £1.27, pushing local hourly rates to £14.55. The adjustment, valued at £200 million, exceeds current inflation levels. Hourly-paid employees have seen a 43% pay increase over the past five years.
