The Financial Conduct Authority (FCA) is reportedly exploring the possibility of raising the UK’s £100 contactless payment limit.
Sky News reports the move is part of its response to a government push for regulators to reduce barriers to economic growth.
The limit, introduced in autumn 2021, could face criticism from retailers and consumer groups if increased.
Sources told Sky that the FCA's discussions are in early stages, and it remains uncertain whether a formal proposal will be made or if the limit could be removed entirely.
The FCA’s review forms part of a broader initiative following a government letter sent to economic regulators urging action to stimulate growth.
Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds recently met with regulatory leaders to discuss proposals, emphasising the importance of balancing growth with other responsibilities.
The FCA may choose to publish its response to the letter in the coming weeks.