Consumers could soon see an higher cap, or even have no limit, when it comes to spending money on their cards via contactless payments. The FCA is proposing that banks will set the limits themselves in future, with phones already offering a way to pay with no spend cap.
The FTSE 100 has been on a slow rise this week as investors continue to back British, though as usual the economic backdrop of the US, as well as the UK, will dictate where the money continues to go. Gold is at an all time high and bitcoin is almost back at $112,000 as some look for greater returns to go with an expectation that the Fed will start an interest rate-cutting cycle.
On this side of the Atlantic however, the expectation is for no cut below 4 per cent by the Bank of England’s MPC when they meet next week, with inflation still weighing heavily – though wage growth has slowed and Friday’s GDP figures may yet prove crucial.
In business, Primark owner Associated British Foods says there’s still an abundance of consumer caution when it comes to spending, with British workers and firms alike unsure which direction taxes will run at the Budget in November.
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Vistry profits tumble as home buyers remain wary
Housebuilder Vistry has seen half-year profits more than halve as buyer demand comes under pressure from worries over the wider economy and slower-than-hoped cuts to interest rates.
The group reported pre-tax profits tumbling 55% to £40.9 million in the six months to June 30.
Vistry – formerly Bovis Homes group – said its forward order book was lower than a year ago, standing at £4.3 billion against £5.1 billion this time last year.
It said it was looking to boost flagging demand with “sales and marketing initiatives”.
Karl Matchett10 September 2025 09:23
Contactless pay cap scrap continues ‘red tape bonfire to speed up growth’
One expert has detailed how binning the contactless pay cap is intended to help us spend more, and more quickly… to help the economy of course.
Whether that’s something consumers actually want – or whether they even think about if they were spending £101 rather than £99 – is up for debate.
But the reminder is there that in fraudulent cases it’s the merchants on the line, not the card owner, so the onus is still on them to check if it’s a big payment or an unusual purchase.
“UK retailers may be hopeful that a further spending boost could come from an expected relaxation of contactless card payment limits,” said Susannah Streeter, head of money at Hargreaves Lansdown.
“The Financial Conduct Authority is proposing to scrap the £100 cap for potentially unlimited transactions, although these would still be set by banks and other providers.
“This is part of a red tape bonfire to try and reduce financial regulation and speed up growth. The idea is that it will be more efficient for retailers and customers alike and will make it easier for consumers to spend more, more quickly.
“This would bring the process more into line with mobile wallets, which can used already for higher-value transactions. There is the potential for increased fraud, but consumers will still have their money protected in the same way, when flagged to a bank.
“It’s the merchants who ultimately pay the price for fraudulent transactions, via the Chargeback process. So, investment in more advanced detection and prevention methods will be even more crucial, including real time monitoring and behavioural analytics to mitigate risks.
“These are investments larger retailers will be better placed to make, but small retailers are likely to be more reluctant to wave through big payments, without extra checks.’”
Karl Matchett10 September 2025 08:40
FCA propose for banks to set contactless cap – £100 could become limitless
Right now, you’re doubtless used to paying for things in contactless fashion: hover your card, waft your phone.
Only one of those has a spending limit though: you need a PIN to use your card for payments over £100, the cap which has been in place since 2021.
However, the FCA (who sets the rules) have proposed a change which could come into play in just a few months, whereby your bank will instead set the card contactless limit – which means it could in theory be limitless.
That would match paying by device, even though almost four in five (78%) of consumers said they didn’t want a change in rules.
“People are still protected. Even with contactless, firms will refund your money if your card is used fraudulently,” said the FCA’s David Geale.
Karl Matchett10 September 2025 08:20
Primark owner says sales improving despite ‘consumer caution’
The parent firm of Primark has said the retail chain saw trading improve in recent months despite “consumer caution”, as its UK and Ireland stores recovered ground.
Associated British Foods (ABF) said Primark sales are set to have grown by 1% over the half-year to September 13, as womenswear and more favourable weather conditions helped support UK stores.
George Weston, chief executive of ABF, said: “I’m pleased with how the group has performed in the second half of our financial year in what continues to be a challenging environment, characterised by consumer caution, geopolitical uncertainty and inflation.”
Primark opened 15 new stores including two in the UK.
Karl Matchett10 September 2025 08:00
Business and Money blog – 10 September
Morning all – we’re back again to bring you all things business and money, the latest economic updates, what our esteemed leaders are up to and how it all affects our pockets and bank accounts.
Stock market updates to come too as usual along the way, with Primark’s owner providing an update this morning.
Karl Matchett10 September 2025 07:54
