Contactless Payment Flexibility Begins Today
Banks and payment providers gain authority to establish their own contactless card spending limits starting today. The Financial Conduct Authority’s move to eliminate the existing £100 cap enables firms to adapt to rising inflation, advancing technology, and evolving consumer behaviors. This change also aims to strengthen fraud prevention measures across the industry.
Providers can now 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 plans to exceed the £100 threshold. Digital banks like Starling and Monzo are evaluating their options.
Many institutions already offer app-based options to reduce personal contactless limits or disable the feature entirely. Barclays reports that 94.6 percent of eligible in-store card payments last year occurred via contactless methods. Industry data reveals contactless transactions comprise 67 percent of credit card use and 76 percent of debit card activity, with an average value just under £18.
Larger amounts remain possible through mobile wallets with fingerprint or facial recognition verification. Consumer safeguards persist, ensuring reimbursements for unauthorized transactions.
InPost Faces Christmas Losses Despite Record 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 the previous year. The company prioritized service quality by limiting peak-time deliveries instead of pursuing short-term gains. Additional pressures stemmed from costs associated with its £106 million acquisition of Yodel.
Parcel volumes still reached a record 262.1 million for 2025, boosted by the Yodel integration.
Credit Unions Expand for Cheaper Loans
Millions of UK residents stand to benefit from lower-cost loans following reforms to credit union regulations. These member-owned organizations maintain a 3 percent monthly interest cap but previously limited membership to three million per union. The cap now rises to 10 million.
Reforms further permit inclusion of students, relatives of members, and retention of pensioners as full participants, promoting greater financial inclusion.
Tesco Raises Hourly Pay for Thousands
Tesco announces pay increases for thousands of store and online fulfillment center employees, effective March 29. Hourly rates climb to £13.28, with the London allowance rising from £1.21 to £1.27, resulting in £14.55 per hour there.
The adjustment, valued at £200 million, exceeds current inflation rates. Hourly-paid staff have seen wages increase by 43 percent over the past five years.
