SMFSC Proposes Higher Contactless Payment Limits

The San Marino Financial Standard Council (SMFSC) — a financial self-regulatory association committed to promoting transparency, honesty, and responsibility in the financial industry — has published new proposals to expand the use of contactless payments, potentially allowing consumers to make larger transactions using contactless technology.

The proposals aim to strike a balance between consumer convenience, innovation, and payment security, ensuring that modern payment systems continue to serve the public efficiently and responsibly.

“Contactless payment has become an integral part of everyday life,” the Council said.
“Our proposed changes would increase convenience for consumers while maintaining strong safeguards against fraud and misuse.”

Enhancing Everyday Payment Experiences

Under the current arrangements, consumers are limited to contactless payments up to a set transaction threshold.
The SMFSC’s consultation proposes raising this limit, reflecting technological advancements in payment security and the growing consumer demand for frictionless transactions.

The Council believes the adjustment would:

• Improve convenience for consumers making moderate-value purchases;
  
• Support innovation within the payments sector by encouraging digital adoption;
  
• Maintain security and trust through continued use of tokenization, real-time monitoring, and authentication tools.
  

SMFSC emphasised that any changes will be implemented gradually, with ongoing assessment of fraud trends and system resilience.

Balancing Security with Innovation

The Council’s proposals are being developed in cooperation with banks, payment service providers, and consumer organisations, ensuring that the new framework aligns with international standards of responsible digital finance.

SMFSC’s approach reflects its broader self-regulatory philosophy — promoting technological progress without compromising transparency, fairness, or consumer protection.

“Innovation must always go hand in hand with responsibility,” the Council stated.
“We are working to ensure that payment systems remain secure, accessible, and reflective of modern consumer behaviour.”

Public Consultation and Next Steps

The SMFSC has launched a public consultation on the proposed changes, inviting feedback from payment providers, retailers, and consumer representatives.
The consultation period will remain open until mid-2026, after which the Council will review submissions and issue final recommendations.

Implementation timelines will be determined based on market readiness and consumer protection safeguards, with SMFSC providing guidance and coordination throughout the transition.

Promoting a Modern, Trustworthy Payment Ecosystem

This initiative represents another step in SMFSC’s commitment to building a transparent, efficient, and consumer-focused financial environment.
By promoting innovation through self-regulatory mechanisms, the Council continues to strengthen public confidence in digital finance while ensuring that progress serves both convenience and integrity.

“We believe payment systems should evolve around people’s needs — not the other way around,” SMFSC concluded.
“Our goal is to ensure that modernisation delivers practical benefits, underpinned by trust and responsibility.”