Cards rule UK payments roost but cash remains important
Cards accounted for 51% of all payments in the UK in 2019, according to a new report from UK Finance.
Debit cards were the most used method with 17 billion payments, of which seven billion were contactless.
Consumer use of credit cards also rose during 2019, up by 7% to 3.3 billion payments, driven partly by the increase in contactless credit cards issued last year. The number of contactless payments across debit and credit cards was up by 16% to 8.6 billion.
Cash payments continued to decline in 2019, falling by 15% to 9.3 billion. This was due to changing retail trends, including the online shopping boom and an increase in card acceptance by retailers. Notes and coins, however, remain the second most popular payment method in the UK after debit cards.
Stephen Jones, CEO at UK Finance, observes that more ways to pay coupled with a change in people’s payment habits may have inadvertently gone some way to prepare the nation for the impact of Covid-19 on their daily lives.
“With consumers already using contactless payments and remote banking more than in previous years, these technological advances have allowed many people to shop and make payments safely from home or in-store,” he comments.
“The impact of Covid-19 may accelerate these habits for many customers; however, we are fully aware that not all customers are digitally-enabled which is why we are working flat out to ensure people have access to cash and everyday banking services remain available to help the country through these difficult times.”
