Debit card payments overtake cash in UK
(20 April 2006 – UK) Debit card payments have overtaken cash payments for the first time in the UK with usage up nine percent on the previous year.
Payments association Apacs, which picks up all online and POS retail transactions in the UK, said payments using debit cards comprised 37 percent of the total £240 billion spent in retail outlets compared with cash which topped out at 34 percent.
Cash spending fell four percent over the year.
Credit and debit card payments together accounted for 63 percent of all retail transactions in 2005, a 60 percent increase on the 2004 figure.
Apacs said a key reason was that more businesses were accepting cards as payment.
"It is clear that there are certain situations when we tend to use a credit card rather than a debit card, for bigger items and when buying online or overseas. Consumers welcome the convenience and security credit cards bring," Apacs said.
Cash spending fell four percent over the year.
Credit and debit card payments together accounted for 63 percent of all retail transactions in 2005, a 60 percent increase on the 2004 figure.
Apacs said a key reason was that more businesses were accepting cards as payment.
"It is clear that there are certain situations when we tend to use a credit card rather than a debit card, for bigger items and when buying online or overseas. Consumers welcome the convenience and security credit cards bring," Apacs said.
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