The legal limit on contactless payments is to more than double to £100, the chancellor Rishi Sunak will announce in his budget later.
Ministers hope the move, designed to make transactions easier, will provide a shot in the arm to the struggling retail industry.
But many in the sector, one of the hardest hit by the coronavirus lockdown, are calling on Mr Sunak to unveil a long-term package of support when he stands up at 12.30pm.
Non-essential retailers still have to wait weeks before they are officially allowed to re-open under the government’s plans to get the country back to normal by mid-June.
Mr Sunak is understood to have told the cabinet this morning that his budget will be about building the UK’s future economy.
He also told cabinet colleagues that the UK could be optimistic about the economic recovery.
Mr Sunak has previously warned the UK faces an economic emergency in the wake of the battle against the global pandemic.