Payments using debit and credit cards have more than doubled over the last ten years.
The rise in online retail and contactless payments have driven a change in the way consumers pay for goods and services according to the latest report from the UK Cards Association (UKCA).
16.4 billion purchases were made on debit and credit cards during 2016, compared to just 6.7 billion in 2006. A rise of 146 per cent over the ten-year period.
The UKCA report also showed that the number of transactions has grown far quicker than the total amount spent, reflecting the increased use of cards for smaller value payments. The average card transaction value fell to its lowest level in 15 years during 2016 at just ?43.47.
The ratio of payments made contactless or online are growing rapidly according to the report, reaching 39 per cent of all card transactions by the end of 2016, compared to 24 per cent the year before.
Recent figures released by Barclaycard revealed that half of in-store card payments up to ?30 are now made contactless. Barclaycard confirmed that mobile phone tap-and-go payments are also soaring, with a rise of 90 per cent spent through its Android app through 2017.
Contactless and mobile phone payments are expected to be the major source of growth for debit card spending in the future, particularly by the younger generation.
Debit card payments are forecast to increase to around 18.2 billion over the next ten years by 2026. Credit card payments are expected to increase to 3.7 billion during the same period.
Payments made by debit and credit cards, are now forecast by Payments UK to overtake cash payments by 2018. A full three years earlier than previously expected, showing the increasing reliance of consumers on their ?flexible friends?.
It seems that the consumer love affair with plastic is increasing pace and people really don’t want to leave home without them.