- Debit cards accounted for 37% of all retail spend in 2005, ahead of cash at 34%

- Plastic cards used for 63% of all UK retail spending last year

Figures released today (18 April 2006) by APACS, the UK payments association, show debit card spending in retail outlets exceeded cash spending for the first time ever last year.

The figures, which cover all retail transactions in 2005 (both online and offline) show debit card spending at 37 per cent (£89bn) of the total £240bn spent, against cash at 34 per cent (£81bn). This shows retail debit card use up nine per cent on 2004 figures of £82bn of retail spending, against cash retail spending down four per cent from £84bn.

Today APACS also released total personal spending on all types of payments in 2005; this also showed cards increasingly being used instead of cash and follows the trend reported by APACS in December 2004 when total personal spending on debit and credit cards overtook cash for the first time. 

Sandra Quinn, director of communications at APACS says:

“At the end of 2004, we saw total UK spending on plastic overtake cash for the first time, signalling a real sea change in our payment habits.  This change was mainly driven by debit card use.  The 2005 figures show that this trend is continuing with debit card spending in retail outlets crashing through the cash barrier for the first time ever.
“There are many reasons behind this continuing trend to pay by debit card, and one of the reasons is that more businesses are accepting cards.  However it is also being led by us as customers - debit cards have been around in the UK for almost 20 years so we now have an entire generation of shoppers who readily delve for their debit card instead of cash.”
“It is clear that there are certain situations when we tend to use a credit card rather than a debit card – for bigger items and when buying online or overseas. Consumers welcome the convenience and security credit cards bring.”

The combined retail figures of spending on credit and debit cards show a continued increase in plastic card use – accounting for 63 per cent of all retail spending in 2005, up from 60 per cent in 2004.

ENDS

For further information contact the APACS Cards Information Office:

T: 0870 420 3208 E: apacs@fourcommunications.com

*           UK Retail Spending includes all transactions on the high street and online.

**         Total UK Spending includes all transactions in all environments - on the high street, online and automated payments (direct debits, phone, online, standing order payments)

APACS is the UK payments association. It provides the forum for the UK's financial institutions to come together on non-competitive issues, to develop banking systems for the future and to provide innovation and developments in payments. It is also the banking industry voice on payments issues such as plastic cards, payment fraud, cheques, electronic payments and cash and is the banking organisation coordinating chip and PIN roll-out.