Cash makes way for Plastic
Debit card spending set to outstrip cash for first time, according to APACS
Debit card spending in retail outlets exceeded cash spending for the first time ever last year, according to figures released today by APACS, the UK payments association.
Total spend on debit cards in UK retail in 2005 was £89bn compared to total cash spending of £81bn. This shows retail debit card use up nine per cent on 2004's figures of £82bn of retail spending, against cash retail spending down four per cent from £84bn.
The statistics cover all retail transactions in 2005 - both online and offline.
Sandra Quinn, director of communications at APACS, said: "At the end of 2004, we saw total UK spending on plastic overtake cash for the first time, signalling a real sea change in our payment habits. This change was mainly driven by debit card use. The 2005 figures show that this trend is continuing with debit card spending in retail outlets crashing through the cash barrier for the first time ever."
“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," added Quinn.
The combined retail figures of spending on credit and debit cards showed a continued increase in plastic card use – accounting for 63 per cent of all retail spending in 2005, up from 60 per cent in 2004.