Tap now, worry later?

From 19 March next year, changes to contactless payment rules will allow banks to increase spending limits - and in some cases let customers set their own.

While the move is designed to make paying quicker and easier, there’s a real concern that it could also make it easier for people to spend more than they realise, increasing the risk of debt.

Contactless is convenient – but it blurs the lines

Contactless payments don’t feel like spending real money.

There’s no cash leaving your hand, no PIN to enter, and no moment to stop and think. That lack of friction makes spending feel effortless, and that’s where the danger lies.

With nearly 95% of in-store card payments now contactless, it’s become the default way people pay. Raising the limit removes another natural pause, making it easier for costs to creep up unnoticed.

Small taps, big impact

It’s rarely one big purchase that causes money problems.

It’s the coffee on the way to work.
The lunchtime treat.
The “quick” shop that costs more than planned.

Each tap feels minor, but together they can quickly add up. Over time, that can lead to:

• Regular overdraft use
• Growing credit card balances
• Less money left for bills and essentials

And because the spending doesn’t feel significant at the time, it often goes unchecked until there’s a problem.

When spending doesn’t feel real

Research shows people are more likely to overspend when payments are quick and painless. Cash creates awareness. Contactless removes it.

At a time when many households are already feeling the strain of rising costs, higher contactless limits could make it harder to stay on top of day-to-day spending.

Convenience might help at the checkout, but it doesn’t help when finances are stretched.

How to stay in control of contactless

Contactless doesn’t need to be switched off completely. A few simple steps can help keep spending in check. Here’s our advice:

Set your own contactless limit

If your bank allows it, choose a lower limit that suits your budget.

Use Chip & PIN for larger purchases

That extra step can be enough to stop impulse spending.

Check your balance regularly

Seeing what’s left helps keep spending front of mind.

Turn on spending alerts

Notifications can flag when you’re close to your limit or balance.

Keep an eye on everyday spending

It’s the small, frequent taps that often cause the biggest issues.

Work with a weekly spending budget

Once it’s used up, stop tapping.