The UK Financial Conduct Authority is planning to remove the £100 contactless limit and implement an open finance regime tackling SME financing.
In a written response to a missive from the Prime Minister and Chancellor to take greater risks in support of the Government's growth agenda, the FCA says it will take a digital first approach, spearheaded by a new executive director for payments and digital finance who will also lead the Payment Systems Regulator.
Alongside existing planned reform to securities settlement, digital assets and pensions, the FCA outlined other measures under consideration.
These include the introduction of variable recurring payments in the open banking market and the use of powers anticipated under the Data (Use and Access) Bill to develop open finance, "potentially prioritising SME lending".
In a surprise move, the FCA says it will "remove" the £100 contactless limit, "allowing firms and customers greater flexibility, drawing on US experience, and levelling the playing field with digital wallets". Digital wallets with biometric logins currently circumvent the limits applied to payment cards at the checkout.
The FCA calls for the Gorvenment to play its part, highlighting three areas that are ripe for legislative reform, stating "digital identity authentication/verification could
unlock huge gains; enhancing the quality of the Companies House database would reduce
costs for business; and digitisation of court systems should reduce delays".