The Debt Clinic
Let's Make Your Finances Better
- Debt Management News (40)
- IVA News (9)
- Remortgage News (12)
- Loan News (19)
- Trust Deed News (3)
- Credit Check News (6)
- Latest News
- Most Popular Articles
Post New Article
Easy Product Advisor
Which solution is right for you?
Our test will give you an unbiased look at which service can help you
Debit Cards Still the Most Popular Way to Pay in the UK
Research has said that debit cards are still the most common way to make payments in Britain, and their popularity is continuing to rise.
British payments body, APACS revealed that debit card spending rose to £221 billion last year.
This represents a 13 per cent increase compared with the previous year and is almost five times higher than in 1997.
It could be the case that many people have maxed out some of their plastic and they now have to deal with credit card debt by using debit cards to clear debt instead.
The use of debit cards also outstripped that of credit cards on the internet, with online debit cards usage increasing by 6 per cent last year to £133 billion, compared with 2006.
The largest single increase in payment methods was among direct debits, which rose by 10 per cent year-on-year to £312 billion.
Cash transactions only increased by 0.4 per cent and cheques continued to be sidelined, with the use of such payments down by 1 per cent.
APACS director of corporate communications, Sandra Quinn said: “Over the past three years we've seen a pattern emerge - debit cards have increasingly become consumers' first choice over other options, such as cash, cheques and credit cards.
"The report also shows that last year debit cards even gained ground in areas where credit cards have traditionally had a firm hold - particularly on the internet.”
Ms Quinn went on to say that early figures from this year suggested that credit card spending was remaining level, despite tighter household finances.
However, she suggested that people should continue to use credit cards when buying online because they provided greater protection against fraud and identity theft.
Evidence of the growing use of debit cards emerged as banking giant Lloyds TSB came under fire for offering them to 11-16 year olds.
Lloyds TSB admitted that it has offered young customers with a cashpoint card the chance to upgrade to a debit card.
Debt Management News posted on 25 July 2008
