We consider contractive homomorphisms of a planar algebra ${\mathcal A}(\Omega)\Omega \subseteq \C$ and ask if they are necessarily completely contractive. We show that a homomorphism for which is the direct integral of homomorphisms induced by operators on two dimensional Hilbert spaces via a suitable functional calculus $\rho_T: f \mapsto f(T), f\in {\mathcal A}(\Omega)\rho_T$, induced by a linear transformation are necessarily completely contractive. Consequently, using Arveson’s dilation theorem for completely contractive homomorphisms, one concludes that such a homomorphism possesses a dilation. In this paper, we construct this dilation explicitly. In view of recent examples discovered by Dritschel and McCullough, we know that not all contractive homomorphisms are completely contractive even if is a linear transformation on a finite-dimensional Hilbert space. We show that one may be able to produce an example of a contractive homomorphism of which is not completely contractive if an operator space which is naturally associated with the problem is not the MAX space. Finally, within a certain special class of contractive homomorphisms of the planar algebra , we construct a dilation.

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