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Debit card spending in UK overtakes cash for first time | Debit card spending in UK overtakes cash for first time |
(about 7 hours later) | |
For the first time, UK consumers have spent more using their debit cards than with cash over the course of a year, data suggests. | For the first time, UK consumers have spent more using their debit cards than with cash over the course of a year, data suggests. |
Spending on debit cards reached £272bn in the 12 months to October, figures from the UK Payments Council show. | Spending on debit cards reached £272bn in the 12 months to October, figures from the UK Payments Council show. |
The statistics, released every three months, showed spending on cash stood at £269bn over the same period. | The statistics, released every three months, showed spending on cash stood at £269bn over the same period. |
Credit card usage remained steady but there was a further decline in the number of cheques written. | Credit card usage remained steady but there was a further decline in the number of cheques written. |
August Bank Holiday spending on plastic meant debit cards overtook cash for the first time, the Council said. | |
"Cash is too cumbersome for many consumers these days - they prefer a card for anything more than the smallest transactions," said Sandra Quinn, of the Payments Council. | "Cash is too cumbersome for many consumers these days - they prefer a card for anything more than the smallest transactions," said Sandra Quinn, of the Payments Council. |
"We now expect our debit cards to be accepted everywhere we go - in pubs and clubs, at the corner shop, online and on the High Street." | "We now expect our debit cards to be accepted everywhere we go - in pubs and clubs, at the corner shop, online and on the High Street." |
Common | Common |
There were 1.6 million more transactions on debit cards every day between July and September compared with the same three months a year earlier, the Council said. The amount spent rose by almost 11%. | There were 1.6 million more transactions on debit cards every day between July and September compared with the same three months a year earlier, the Council said. The amount spent rose by almost 11%. |
Withdrawals from cash machines dipped slightly during the same three months, and credit card usage has remained relatively steady. | Withdrawals from cash machines dipped slightly during the same three months, and credit card usage has remained relatively steady. |
Some experts suggest that technology will be developed that allows the chips currently used in debit cards to be placed in everyday items such as mobile phones - further accelerating non-cash payments. | Some experts suggest that technology will be developed that allows the chips currently used in debit cards to be placed in everyday items such as mobile phones - further accelerating non-cash payments. |
But historically, lower-income families have argued that they find it easier to budget using cash. | But historically, lower-income families have argued that they find it easier to budget using cash. |
Cheques | Cheques |
The figures also chart the further decline of cheques with 104 million fewer written in the UK in the 12 months to October, compared with the previous year. | The figures also chart the further decline of cheques with 104 million fewer written in the UK in the 12 months to October, compared with the previous year. |
The Council has recommended that cheques be phased out by 2018, but only if adequate alternatives were developed. | The Council has recommended that cheques be phased out by 2018, but only if adequate alternatives were developed. |
But this has been met with a degree of backlash by some MPs and consumer groups. | But this has been met with a degree of backlash by some MPs and consumer groups. |
Last month David Ward, the Liberal Democrat MP for Bradford East, launched a campaign to save the cheque saying its potential demise was a "cost saving exercise for the banks". | Last month David Ward, the Liberal Democrat MP for Bradford East, launched a campaign to save the cheque saying its potential demise was a "cost saving exercise for the banks". |
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