You are here: Home - Saving-Banking - News -

Cards account for more than four in every five pounds spent

0
Written by:
21/09/2021
Brits use credit or debit cards for more than four in every five pounds of retail spending, new figures reveal.

In 2020, 81 per cent of spending was made by payment cards, up from 78 per cent in 2019, according to the British Retail Consortium (BRC).

Cash accounted for just 15 per cent of total spending in retail last year, down from 20 per cent in 2019.

The findings suggest the Covid pandemic has changed the way consumers shop as well as how they pay.

Brits now make fewer shopping trips, but spend more each time, the BRC said.

The number of transactions fell by 13 per cent between 2019 and 2020 from 19.1bn to 16.7bn, but shoppers spent on average 20 per cent more per transaction.

The average transaction value increased from £20.16 in 2019 to £24.15 in 2020.

The overwhelming trend towards card payments in recent years has meant retailers incurred costs of more than £1bn just to accept these payments from customers in 2020.

Debit cards, which accounted for over half of all transactions (54 per cent) for the first time, have seen transaction fees rise by 22 per cent.

The BRC said these card fees plus mounting costs from Covid, Brexit, global supply chain disruption and rising commodity prices, are putting increased cost pressures on retailers, which could translate to higher prices for consumers.

The group is calling on Parliament to intervene to protect British businesses and consumers from spiralling costs.

Last year, the UK Supreme Court ruled that card firm interchange fees were unlawful, yet the UK’s Payment Systems Regulator five-year strategy delivers nothing to resolve this issue, the BRC said.

Andrew Cregan, payments policy advisor at British Retail Consortium, said: “Despite the general movement to card payments, retailers are being punished through the soaring cost of accepting such payments.

“Parliament needs to urgently intervene in this anti-competitive behaviour by regulating card scheme fees and abolishing interchange fees, both of which ultimately hurt consumers.

“Card firms are abusing their dominant market position, and this must come to an end.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week