Credit card use falls

Tuesday, 28 April 2009 12:00

Credit cards are losing out to debit and cash on the high street as consumers become cautious with debt, according to the latest payment data.

According to payments association Apacs, consumers spent 6.8 per cent more on debit cards in 2008 compared to 2007 and 2.4 per cent more on cash.

But spending on credit cards declined by 0.6 per cent.

Sandra Quinn, director of communications says: "Most notably consumers are increasingly choosing to use their debit cards in preference to cash or cheques and also, it seems, their credit cards.

"This year we expect debit card spending alone will outstrip cash spending for the first time."

Cheques continued their decline, with consumers spending 4.1 per cent less on payments than 2007.

The retail spending statistics, which cover all online and offline retail transactions in 2008, show that of a total £269.9 billion spent by consumers, 43 per cent (£116.1 billion) was by debit card, 32 per cent (£86 billion) was by cash, 23 per cent (£60.7 billion) was by credit card and only three per cent (£7.1 billion) was by cheque.

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