A report by the UK Card Association shows that 74.5% of retail volume transactions (GBP 520 Bn) in UK were made using payment cards in 2013 vs. 46.5% in 2003. At the same time outstanding credit card debt was reduced to GBP 56.4 Bn vs. GBP 67.4 in 2005. The study says online shopping was one of the causes of this behavior.
Melanie Johnson, Chair of The UK Cards Association, said: “With three in every four pounds spent in British shops now paid with cards, these figures reveal a huge shift over the last decade in the way we chose to transact. Rather than carrying cash, consumers are increasingly opting for their cards instead, not least because of the extra protections available.
In 2013 there were 95.7 M debit cards (+5.15% y-o-y growth) and 55.4 M credit cards (-1.9% y-o-y growth). A staggering 90% of adults hold at a least a debit card and 60% have a credit or charge card. Debit cards were used 94 times on average for a total of GBP 4k (average transaction was held for GBP 21) while credit cards were used 42 times on average for GBP 2.9k (average transaction value was GBP 69).
The study also forecasts an increase in usage due to demographics, contactless card adoption, on-line shopping and deployment of m-POS.
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