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Debit card payments overtake cash
Debit card payments have overtaken cash use for the first time, according to UK Finance figures.
A total of 13.2bn debit card payments were made in 2017, compared to 13.1bn cash payments, reflecting increased access to card payments and new technology providing more choice.The popularity of contactless payments, online shopping and smartphones is having a significant effect on how we manage our money and pay for things, says UK Finance. Almost two thirds of Britons now use contactless payments as the number of increased by 97% during 2017 to 5.6bn. By comparison, cash payments were down 15% year-on-year. An increasing acceptance of card payments by smaller businesses and people becoming ever-more comfortable and familiar with the speed, ease and security of making low-value payments has also made the use of debit cards more popular.
It is anticipated 36% of all payments across the UK will be contactless in 2027. Although, cash is predicted to remain the second most frequently used payment method in the UK in 2027.
Stephen Jones, Chief Executive, UK Finance says: “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.“These trends are likely to shift further over the next decade. Developments such as Open Banking are expected to bring extensive changes to the payments landscape, something that will likely shape how we interact with our money in the coming years.”