Press Releases
Spending in December reaches record high
- shoppers chose debit cards for 67% of card payments
- chip and PIN change shows no impact on UK’s increasing use of cards
APACS, the UK payments association representing card issuers, today (17 February 2006) released December 2005 spending figures, which show that spending over the Christmas period reached £28.5 billion (8.9% increase on December 2004).
Plastic cards continued to dominate as the most popular method of payment with 61.4 per cent of all retail spending in the UK during December 2005 made on plastic – a rise of 2 per cent on the previous year.
In addition, the frequency that we use our cards is increasing – a record 630.5 million purchases were made on plastic in December 2005, an increase of 7.9 per cent on December 2004. As chip and PIN enters its final stage, cardholders are clearly finding it quick and easy to make payments on cards and are continuing to switch from cash and cheques.
Purchases on debit cards continued to make up an increasing proportion of total purchases on plastic, with the figure standing at 67 per cent in December 2005, an increase of two per cent on the previous year.
Spending on credit cards rose slightly with an increase of 0.9 per cent on last year’s figure. Credit cards are still popular in the UK, with cardholders enjoying the protection they provide under the Consumer Credit Act.
Sandra Quinn, director of communications at APACS, said:
“We spent a record amount this December on our plastic cards, and we are seeing an ongoing trend of paying by debit rather than credit cards – perhaps reflecting that we’ve become a nation who wants to keep a tighter rein on our finances. This said, the fact remains that credit card spending continues to rise and so do repayments. And this can only be because we like credit cards, and enjoy the flexibility and benefits they provide - especially where they give added protection and the flexibility to spread the load over time when buying high value items. Anyone who borrowed money over Christmas if they haven’t done so already should sit down and work out exactly how they plan to repay.”
Table showing spending December 2004 / December 2005
UK consumer spending |
December 2004 |
December 2005 |
% change |
|---|---|---|---|
On plastic cards |
£26.2 billion |
£28.5 billion |
8.9% |
On debit cards |
£14.8 billion |
£17.0 billion |
15.1% |
On credit cards |
£11.4 billion |
£11.5 billion |
0.9% |
ENDS
For further information contact the APACS Cards Information Office:
T: 0870 420 3208 E: apacs@fourcommunications.com
