12 May 2008
Debit cards are becoming increasingly popular with British consumers, with spending increasing in 2007 by 11 per cent compared with the previous year.
According to figures from UK payments association Apacs, debit cards are increasingly popular at retailers, while the number of people using cheques to make purchases continues to fall, dropping 13 per cent in terms of volume between 2006 and 2007.
Debit card spending now accounts for 42 per cent of the total £261 billion spent at retailers during 2007, both online and offline, while cash stands at 32 per cent and cheques account for just three per cent of all retail transactions.
Credit cards continue to be a popular choice with consumers, but their use has plateaued over the past three years, as people choose to monitor their spending more closely.
Sandra Quinn, Apacs director of communications, stated: "We are becoming increasingly reliant on our plastic cards at retailers as they offer us convenience, speed and access to services, such as the cashback facility, which other payment options cannot provide."
Credit cards can provide consumers with additional protections when making purchases and it is wise to pay by credit card when making larger purchases from retailers.
Figures from Apacs show that Britons donated more than £1 billion on plastic cards during 2007, rising from £842 million in 2006 to £1.013 billion last year, exceeding £1 billion for the first time ever.