Online payments account for 20% of all credit and debit card spend in UK – Barclaycard and IMRG

Online transactions now account for 20% of all credit and debit card spend in the UK, according to Barclaycard and IMRG.

Online transactions now account for 20% of all credit and debit card spend in the UK, according to Barclaycard and IMRG.

The figure represents a rise of 5% since 2011, when online use of credit and debit cards accounted for 15%.

Chris Wood, Barclaycard MD, said: "Online shopping has come a long way since it first emerged in 1984 and now accounts for one in every five pounds spent on credit and debit cards in the UK.

"More and more of us are turning to the web to research, compare prices and buy everything from cinema trips and electronics to the latest fashions, making it an inextricable part of modern retail."

Barclaycard processes around one in three of all the UK’s credit and debit card transactions and acts as merchant acquirer in nearly 40% of card transactions.

A company spokesperson said Barclaycard extrapolated outwards from the data it had from its share of the market to come up with the figures released in May.

Barclaycard and IMRG, the self-styled voice of the UK online retail industry, counted sales on a mobile device as online transactions and said that these accounted for a third of online sales.

IMRG said it expected the UK to spend £107bn online this year, or an average of £4,000 by each UK household.

Online spending was especially strong in the music and airline industries, with Barclaycard data showing that last year alone online payments for music grew by 124% and 79% of music is now bought online.

Online transactions accounted for 80% of airline spending and already this year the number of online airline transactions is up 5.6% and total spend is up 4.2% on an inflation-adjusted basis.

Wood said: "The music and airline industries are prime examples of where businesses have fully embraced the potential of the internet and have made it their main source of business.

"These sectors show it is vital for retailers to move quickly to keep pace with their customers’ desire to shop online, where they can build deeper relationships and engage with customers, or they risk being left behind."

 

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