25 February 2018
visit www.ebaday.com

Contactless helps debit cards dominate UK spending

03 July 2013  |  7250 views  |  0 mastercard contactless payment 1

The rise of contactless payments helped debit cards strengthen their dominance over UK retail spending last year, according to trade association figures.

The UK Cards Association says that Brits used debit cards to make 7.7 billion purchases, worth £337 billion last year, accounting for half of the value of all retail sales.

With 47 million cardholders throughout the UK, that means that the average number of transactions for the 12 months passed the 200 mark for the first time, reflecting an increased willingness to pay for small value purchases with plastic, suggests the report.

This is partly because there are now 32 million contactless cards in circulation in the UK and their use is increasingly rapidly. At the end of 2012 they were used to make 70 transactions per minute but this had risen to 120 a minute by March and is predicted to hit 300 per minute at the end of 2013.

In contrast, 30 million credit and charge cardholders made just 2.2 billion purchases, worth £140 billion, between them, averaging 68 transactions a year.

For the first time, 2012 also saw debit overtake credit for online spending - £35 billion, compared to £34 billion. Total online card spending increased by £5 billion to £68 billion - 15% of all personal card spending.

The association predicts that cards will see their dominance over the likes of cash and cheques grow over the next decade, with the value of transactions nearly doubling to £840 million.

This will be driven by the young, who have grown up with cards, the continued rise of contactless payments, and technological innovation that allows payments to be made using mobile phones rather than cards.

However, although the report predicts that mobile payments and commerce will help drive debit card spending, the new channel also poses a risk. The recently announced Barclays' Buyit and Vocalink's Zapp mobile services both bypass the card schemes, instead making use of Faster Payments, providing a hint of a potential cardless future.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Dutch central bank comes down in favour of hard cash

Dutch central bank comes down in favour of hard cash

28 June 2013  |  9778 views  |  3 comments | 12 tweets | 9 linkedin
Lloyds targets Mpos market through Monitise deal

Lloyds targets Mpos market through Monitise deal

26 June 2013  |  12126 views  |  0 comments | 8 tweets | 15 linkedin
VocaLink unveils Zapp m-payments service for banks and retailers

VocaLink unveils Zapp m-payments service for banks and retailers

24 June 2013  |  16768 views  |  3 comments | 13 tweets | 15 linkedin
Barclays extends mobile payments to retailers with Buyit

Barclays extends mobile payments to retailers with Buyit

19 June 2013  |  15408 views  |  4 comments | 25 tweets | 17 linkedin
Starbucks goes contactless in the UK

Starbucks goes contactless in the UK

17 June 2013  |  11499 views  |  4 comments | 23 tweets | 21 linkedin
M&S customers embrace contactless payments

M&S customers embrace contactless payments

07 May 2013  |  7738 views  |  0 comments | 15 tweets | 5 linkedin
US chip card debate heats up

US chip card debate heats up

26 April 2013  |  15069 views  |  0 comments | 13 tweets | 7 linkedin
Debit cards usurp cash but mobile will soon rule

Debit cards usurp cash but mobile will soon rule

20 February 2013  |  10763 views  |  0 comments | 25 tweets | 16 linkedin
Non-cash payments on the rise in EU

Non-cash payments on the rise in EU

10 September 2012  |  7084 views  |  0 comments | 1 tweets | 1 linkedin

Related blogs

Create a blog about this story (membership required)
Visit https://www.capgemini.comVisit http://info.nice.comVisit www.vasco.com

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
12517 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10741 views 4 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
9194 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
8572 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
8386 views comments | 11 tweets | 14 linkedin

Featured job

Basic c. EUR 90K OTE c. EUR 180K plus full bene...
Paris (preferred) or London

Find your next job