Half yearly cards report – so far so good
We are only just into June and already it has been a huge year for UK cards.
Rarely a week goes by without more positive news. Smart public transport ticketing is one mega area for growth.
Meantime, debit and credit card spending continues to show double digit growth.
According to Payments UK, debit cards will overtake cash as the UK’s most frequently-used payment method by 2021.
The association forecasts that debit cards will be used for 21 billion payments in the UK, worth £856bn, by 2025. In 2015, 45% of all UK payments were still made by cash. This is estimated to fall to just 27% by 2021.
This coincided with news from the UK Cards Association that Britons spent £660bn on debit and credit card purchases in 2015, an increase of 10% compared to £602.3bn in 2014.
The same report noted that card spending online soared by 20% to £210bn from £175bn; by the end of the year, half of all online spending took place via tablets and smartphones, up from 37% in 2014.
The association forecasted that debit cards will be used for 21 billion payments in the UK, worth £856bn, by 2025.
In other card sectors, as reported in this issue, the gift card industry is booming, boosted by the shift from physical to digital gifting.
Currently the UK has less than a 5% digital share in the gift card industry but it is growing at a rate of plus-200% year-on-year.