THE limit on a single contactless payment is set to double to £100.

The Financial Conduct Authority (FCA) regulator has said it will consult "shortly" on a change in the rules that would see the the amount paid through contactless double from the current limit.

The coronavirus pandemic has led to larger amounts spent via contactless payments, either using cards or devices such as smartphones.

It comes as the use of cash machines has slumped by a third in Scotland during the coronavirus leading to new concerns about the future of money.

Last week the Herald revealed that over 2m Scots have been refused payment with notes and coins during the pandemic, threatening the viability of the cash network.

Calls have been made for the government to legislate to protect cash.

When 'tap and go' contactless cards first came out in 2007, they had a limit of £10.

This was increased to £15 in 2010, £20 in 2012, £30 in 2015 and most recently the European Commission's agreed increase to £45 or €50 in March when plans to increase the limit were accelerated as part of the industry's response to Covid-19.

READ MORE: The end of cash? Cash withdrawals slump by £76m in Scotland during Covid crisis

The FCA said: "It is important that payments regulation keeps pace with consumer and merchant expectations.

"Recognising changing behaviour in how people pay, as part of a wider consultation, we will shortly be seeking views on amending our rules to allow for a possible increase in the contactless limit to £100."

The FCA can set the boundaries for payments, under its rules, but the card issuers would have the power to set the actual limits.

The idea was first raised to the Treasury by UK Finance, the City lobby group, a month ago, who joined with card service providers to highlight the need for the limit increase.

The proportion of debit card payments made using contactless reached its highest level in September, accounting for 64 per cent of all debit card transactions and 46 per cent of credit card transactions in the UK, according to UK Finance.

But allowing people to tap and go on higher value card transactions is expected to spark concerns about fraud and the future of cash.

Gareth Shaw, head of money at the consumer organisaWhich?, said: “Raising the contactless payment limit will be helpful for those who are comfortable managing their money digitally and is a further demonstration of the banking industry’s acceleration towards cashless payments.

“However, the focus cannot solely be on making things more convenient for those that can benefit from developments in payment technology. Millions of people still rely on cash to pay for essential products and the cash network needs to be protected for them, as the rapid pace of cash machines and bank branch closures shows no sign of slowing down.

"Legislation needs to be introduced by the government as soon as possible to safeguard access, while the regulator must track cash acceptance, as legislation will be undermined if there is nowhere to spend it.”