The UK Cards Association - News news items from The UK Cards Associationen-usCopyright 2012 The UK Cards Association19/06/2017 16:06:20UK Cards Association logo payments more than double in 10 yearsThe number of purchases using debit and credit cards has more than doubled in the past 10 years, as contactless payments and online retail have driven a change in the way consumers pay, a new report from The UK Cards Association shows. Debit and credit cards were used to make 16.4 billion purchases in 2016, up 146 per cent from 6.7 billion in 2006. It means that 518 card payments were made every second last year by cardholders both in the UK and travelling overseas. Over the past decade the growth in the number of card transactions has outstripped the rise in the amount spent, showing consumers’ increasing preference for using cards instead of cash for lower value payments. Last year the average value of a card transaction fell to £43.47, its lowest level in 15 years. The new report, UK Card Payments 2017, highlights the impact of the growth in online spending and contactless payments. By the end of 2016, four in 10 (39 per cent) card transactions were either online or made using a contactless card, compared to a quarter (24 per cent) the previous year. Graham Peacop, Chief Executive of The UK Cards Association, said: “Card payments play a central role in our economy, with spending equivalent to a third of the UK’s GDP. As consumers continue to make the switch from cash to contactless and with the rise of the app-economy, we forecast that the number of card payments will grow substantially over the next decade too.” With card payments providing significant benefits to businesses, the number of retailers accepting cards increased to just over 1 million last year. The number of individual outlets accepting cards has jumped by 63 per cent in the last 10 years to 1.3 million in 2016. A total of £709 billion was spent by UK debit and credit card holders both domestically and overseas last year. Debit cards represented 75% of this total, amounting to £530 billion. This month is the 30th anniversary of the introduction of the debit card to the UK. Payment cards were used for three-quarters (77 per cent) of all retail spending in the UK last year. Cardholders spent the most on food and drink (£114 billion), followed by other services (£100 billion), financial services (£80 billion) and entertainment (£57 billion). A third of all card purchases in 2016 were made at supermarkets, while every fifth payment was on entertainment. In 2016, there have been significant developments in the delivery of digital services to consumers, such as in-app purchasing and a new trend of fusing social media formats with payment capabilities. In the next decade, the increasing use of contactless and mobile payments, particularly by younger people, will be a major source of growth for debit card payments, the report says. The volume of debit card purchases is forecast to grow by 57 per cent to 18.2 billion in 2026, four times the number made in 2006. In a decade’s time, half of all debit card transactions (51 per cent) will be contactless. Credit card transactions are expected to increase to 3.7 billion by 2026. ENDS For further information contact the press office on 020 3217 8436 Notes to editors: About The UK Cards Association The UK Cards Association is the trade body for the card payments industry in the UK, representing financial institutions which act as card issuers and acquirers. The Association promotes co-operation between industry participants in order to progress non-competitive matters of mutual interest; informs and engages with stakeholders to shape legal and regulatory developments; develops industry best practice; safeguards the integrity of the card payments industry by tackling card fraud; develops industry standards; and co-ordinates other industry-wide initiatives such as those aiming to deliver innovation. As an Association we are committed to delivering a card payments industry that is constantly focused on improved outcomes for the customer. UK Cards Association19/06/2017 16:06:20New guide to help the finance industry support vulnerable customers when applying for creditA new guide that helps finance providers identify and support customers in vulnerable situations during the credit application process is being launched today by the Finance & Leasing Association (FLA) and The UK Cards Association. Developed by the University of Bristol’s Personal Finance Research Centre (PFRC), in partnership with both Associations, Vulnerability: a guide for lending, uses the experiences of 1,666 staff across 18 finance providers to address the issues they face when managing credit applications from vulnerable customers. The guide focuses on supporting customers with a mental capacity limitation that may affect their decision-making abilities. A new protocol – BRUCE – has been designed to help staff look for clues in a customer’s behaviour or speech which could indicate a problem with remembering, understanding, communicating or evaluating the credit options being discussed, and the customer making a decision about entering into a credit agreement. Stephen Sklaroff, Director General of the FLA, said: “Vulnerability: a guide for lending offers the industry a comprehensive set of measures to support customers who are applying for credit - whether face-to-face, over the phone, through an intermediary or online. This guide, and the parallel report on debt collection published in March, provide the industry with an effective way to help identify and support vulnerable customers across the full credit cycle.” Graham Peacop, Chief Executive of The UK Cards Association, said: “Being in a vulnerable situation should not, in itself, be a barrier to accessing credit, but it is vital such customers receive additional support throughout the application process to ensure they can understand, remember and evaluate information about the product. This guide provides a valuable new resource for all credit providers to help them give that essential support to customers and secure the right outcome for the individual.” The publication is the second part of a research project led by Chris Fitch and Jamie Evans of the PFRC. In March the team produced a report on supporting vulnerable customers during the debt collection process. The report is available to download and the findings of the research have been provided to the memberships of the FLA and The UK Cards Association and will also be available to industry. Notes to editors 1. Vulnerability: a guide for lending has been financed by the FLA and The UK Cards Association. 2. The guide can be downloaded from the FLA, The UK Cards Association, and the Personal Finance Research Centre. 3. The following organisations have endorsed the guide and were represented on the research advisory group: the Council of Mortgage Lenders (CML), the Building Societies Association (BSA), the Money Advice Trust (MAT), the Credit Services Association (CSA) and the British Bankers’ Association (BBA). 4. Chris Fitch is an expert in the field of mental health and financial services at the Personal Finance Research Centre at the University of Bristol, and also works on the Money Advice Trust’s programme on vulnerability training and organisational change. The research team also included Jamie Evans from the Personal Finance Research Centre, Colin Trend, Project Manager, Plymouth Focus Advice Centre, and Tim Farmer, TSF Consultants. 5. The Personal Finance Research Centre (PFRC) was established in 1998, and is an independent research centre based at the University of Bristol, which specialises in social research across all areas of personal finance, mainly from the consumer’s perspective. 6. The UK Cards Association is the trade body for the card payments industry in the UK, representing financial institutions which act as card issuers and acquirers. As an Association, UK Cards is committed to delivering a card payments industry that is constantly focused on improved outcomes for the customer. The press office can be contacted on 020 3217 8436 or 7. The Finance & Leasing Association is the leading trade body for the asset, consumer and motor finance sectors in the UK, and the largest organisation of its kind in Europe. In 2016, our members provided £118 billion of new finance. £88 billion of this was in the form of consumer credit to support purchases ranging from cars to household goods and £30 billion was provided to businesses and the public sector, representing almost a third of UK investment in machinery, equipment and purchased software in the UK last year. The FLA press office can be contacted on 020 7420 9656 or UK Cards Association14/06/2017 12:48:34UK Card Expenditure Statistics: March 2017Payment card spending in March 2017 was £57.8 billion, up by £335 million (0.6 per cent) on February. UK Cards Association23/05/2017 09:58:46UK Card Expenditure Statistics: February 2017Total card spending in February 2017 was £57.2 billion, an increase of £300 million on January, and up from £52.2 billion in February 2016. UK Cards Association28/04/2017 09:46:32Online card spending up by a quarterInternet spending has jumped by more than a quarter in the last two years, a new report analysing how the UK uses payment cards online reveals. Card spending on the internet totalled £154 billion in the UK in 2016, averaging £422 million a day, figures from The UK Cards Association show. This is a rise of 28 per cent since 2014, when online spending amounted to £120 billion. Analysis finds one in four card purchases online is on entertainment, with consumers buying cinema and concert tickets, takeaway orders and digital content. Figures also show the UK spends online more per household than any other country, at US$5,900 in 2015. This is higher than Norway (US$5,400), the USA (US$4,500) and Australia (US$4,000). The report looks at internet spending patterns on debit and credit cards in the UK and finds that: UK Cards Association21/04/2017 08:57:46