Debit card spending continues to grow
Spending on payment cards reached £51 billion in July with the growth in debit card spending continuing to outstrip credit cards, according to the latest figures from The UK Cards Association.
Consumers spent £36.2 billion on their debit cards in July, up 7.8 per cent on the previous year. Credit card spending grew by 4.6 per cent to £14.8 billion, with the rate of growth slower than in July 2014 when it was 6.3 per cent on credit cards.
There was a record 1.1 billion card purchases in July, up 0.9 per cent on June. This reflects the continuous improvement in the economy and the ongoing migration of payments from cash to card.
Overall, 128 million purchases were made online which accounted for 11.5 per cent of total purchases.
The annual growth rate in the number of purchases reached 9.8 per cent in July. By contrast, the annual rate of growth of online purchases was stronger, at 22 per cent.
Contactless payments increased from 2.6 per cent of total card purchases in July 2014 to 8 per cent in July 2015.
The average transaction value (ATV) on all payment cards has continued to decline, falling by 22p to £45.96. However, the ATV for online purchases remained higher than the overall figure, at £86.03.
Richard Koch, Head of Policy at The UK Cards Association, said:
“Cards are increasingly the preferred way to pay. Whether shopping in stores or online, more and more customers are reaching for their cards over cash.
“Card usage looks set to continue to grow and we expect the amount of money spent using cards to continue to increase. The new £30 contactless payment limit will contribute to this and continue the patterns we have seen of lower value purchases being shifted from cash to card.”