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Brits ditch credit for debit cards - Apacs

15 May 2009  |  8000 views  |  3 card chip

Brits are turning away from credit to debit cards during the recession, according to payments association Apacs.

In the first quarter total spending on plastic cards was up 5.4% at £94.2 billion. The number of purchases made was up 6.5% to 1.9 billion.

Debit cards accounted for 74.5% of all plastic card purchases in 2009, seeing a four per cent rise in spending compared to Q1 2008. In contrast, spending on credit cards fell three per cent.

The popularity of cheques continued to decline, with the number cleared falling by 10.6%, and the total value down by 9.4%

Meanwhile, there were 696 million withdrawals from cash machine during the three months, with £45.1 billion taken out.

The Faster Payments Service, launched in May 2008, continues to gather momentum, with 60.1 million payments processed to a value of £20.6 billion in the first quarter of 2009.

Since launch, a total of 142.9 million payments have been processed, reaching a total value of £53.5 billion.

Comments: (3)

Aashish Sharma
Aashish Sharma - Emotion Associates - London | 15 May, 2009, 17:21

It would be interesting to see if spend on prepaid cards continues to rise as well as industry experts tend to suggest.

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Keith Richbell
Keith Richbell - eftpos Payments Australia Ltd. (ePAL) - Sydney | 17 May, 2009, 23:22

There are no real surprises with these statistics but they do highlight the success of the UK Faster Payments Service. Congratulations to the UK banks, their IT suppliers and especially VocaLink for delivering a world beating payment service that other national payment infrastructures can only dream of aspiring to. It may have cost a small fortune to get up and running but to the end consumer it works like a charm! The next challenge is to see how the banks promote it and build new payment services that use its fantastic capability.

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A Finextra member
A Finextra member | 18 May, 2009, 10:23

It would be great to know if the UK banks are now charging annual fees for their issued cards.

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