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

Debit cards more popular than cash for the first time

0
Written by:
18/06/2018
Debit cards have overtaken cash as the most frequently used payment method in the UK for the first time.

Consumers made 13.2 billion debit card payments in 2017 compared to 13.1 billion cash payments, according to a report by trade body, UK Finance.

It said the popularity of contactless payments was a “key driver of debit card growth”.

Almost two thirds of people now use contactless payments, and no age group or region falls below 50% usage.

Across both debit and credit cards, the number of contactless payments increased by 97% during 2017 to 5.6 billion.

Cash payments were down 15% year-on-year, with around 3.4 million people never using cash at all. However, cash is still the second most frequently used payment method.

While UK Finance expects the number of cash payments to continue to fall over the next decade, it said the UK is “far from becoming a cash-free society”.

Stephen Jones, chief executive of UK Finance, said: “The choice of payment options available in the UK is allowing people to choose to pay the way that best suits them. But we’re far from becoming a cash-free society and despite the UK transforming to an economy where cash is less important than it once was, it will remain a payment method that continues to be valued and preferred by many.”

In total, there were 38.8 billion payments made in the UK last year.

The report predicts debit card payment volumes will grow by 49% to 19.7 billion payments in 2027, driven by the continuing rise of contactless payments, the ongoing growth of online shopping and ever-increasing levels of card acceptance particularly among smaller businesses.

 

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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
One-stop death notification service launches

Bereaved relatives will no longer need to repeat information about the death of a loved one to several financial organisations...

Close