The transaction limit for contactless card payments has increased from £20 to £30.
The increase will benefit users of mobile payment services such as the recently introduced Apple Pay as well as card users.
However, to reduce the risk of fraud there will still be a limit of three contactless transactions per day, aside from some exemptions such as Transport for London.
There are concerns that increasing the payment limit could lead to an increased chance of fraud. However, the UK Cards Assocation says that the risk of contactless payment fraud is minimal, with less than 1p of fraud committed for every £100 spent.
Over £2.5 billion of contactless payments were made during the first half of 2015.