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Debit card spending overtook credit card spending last year

March 17, 2009 by admin  
Filed under News, News-Credit-Cards

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Recently released figures have shown that UK consumers spent more on their debit cards last year than on their credit cards, indicating that many are becoming more cautious about getting into debt in the current financial climate.

With many retailers now not accepting cheque payments credit cards and debit cards have become the only options for those that do not want to pay by cash, and for many the chosen method of payment has been the debit card.

The figures showed that compared to 2007 there was only a slight increase in credit card spending last year. Credit card spending levels for 2008 increase by around £2 billion, rising from £124 billion in 2007 to £126 billion in 2008. However, the figures showed an increase of around 9 percent in debit card use in 2008 compared to 2007, with the amount spent on debit cards rising to £245 billion in 2008 compared to £224 billion in 2007.

There has been a sharp decline in the use of cheques, and this is partly due to the fact that many retailers have stopped accepting cheques as a method of payment, and this has resulted in an increasing number of people turning to their debit cards in order to pay for their purchases.

However, cheque supporters have said that cheque use will not be phased out altogether, stating: “Until there is greater transparency over the costs involved in processing cheques and suitable alternative ways to pay small businesses and individuals the cheque will celebrate many more birthdays.”

There was also an increase in the number of debit cards that were in circulation in 2008 compared to the number of credit cards in circulation according to figures from APACS. In 2007 there were 72 million debit cards in circulation and 73 million credit and store cards. However, in 2008 there were 75 million debit cards in circulation compared to 71 million credit and store cards.

Tags: Payment systems, Debit cards, credit card spending, debit card spending, card, slight increase

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