UK consumers are most likely among those in developed markets to indulge in online shopping, but what form of payment did a new report reveal was the most popular?
The UK Card Association published its card payments report for 2013, and revealed an interesting precedent for eCommerce. The results revealed that for the first time debit card payments exceeded credit card payments for online shopping. The UK Card Association further reported the new implications as a result of the increase of debit card use in the UK.
PYMNTS.com breaks down where and how the UK population is making card payments.
Debit Cards Versus Credit Cards
The study found that in 2012, online shoppers in the UK spent £34 billion using debit cards. This number increased by nearly $1 billion in 2013, as figures reached £35 billion.
Consumers made sure they weren’t leaving debit cards at home by the computer, and the report found that debit card payments were also dominating in-store purchases. Each debit card-using consumer conducted an average of 205 transactions in the last year. The figures indicated a 10 percent increase from the previous year’s results.
Debit cards are winning the entire race, as the report published that around 91 percent of UK adults own a debit card, compared to the 61 percent of consumers with a credit card.
The Card Association stated that the increase in merchant card acceptance across the country has played a major role in boosting debit card use. More stores have installed advanced technology such as Chip & PIN devices, which have also encouraged debit card payments.
The Association projected that debit card spending will double within the next 10 years, rising from £447 billion to £840 billion.
Consumer Protection
The report reiterated that UK consumers spend more time Internet shopping in comparison to other developed countries. About two-thirds of UK adult shoppers were reported to have purchased products or services online.
The increase of online shopping in Britain implies that consumers are growing more comfortable with the online marketplace. Additionally, the trend indicates that shoppers are willing to directly use bank account cards to make online payments.
Alternatively, many retail sites charge extra for credit card payments, which may also be the reason consumers are using debit cards online.
Credit cards offer better protection since merchants can cancel pending transactions, whereas a debit card payment is made immediately. The UK section 75 of Consumer Credit Act 1974 allows purchases over £100 to be claimed in the event of fraud.
Keeping Safe As Card Payments Grow
The Card Association offers consumer safety tips for those who frequently make card payments on the Internet. Some tips include double-checking to make sure the website is trustworthy before making a payment, keeping passwords safe in case of extra verification, logging out of the website account after purchases, and continuously monitoring bank statements as well as keeping all receipts.
The report illustrates the importance to remain vigilant with Internet protection since data technology is constantly expanding.
To read the full report at the UK Card Association, click here.
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