Debit cards retain popularity at retailers

Figures released by APACS, the UK payments association, show that the debit card retains its popularity at retailers, with spending rising by 11% last year. This increase serves as a stark contrast from cheque spending, which declined by 7.5% in terms of value and 13% by volume, over the same period.

The statistics, which cover all retail transactions in 2007 (both online and offline), show debit card spending at 42% (£109 billion) of the total £261 billion spent, against cheque at 3% (£7.5 billion) and cash at 32% (£84 billion).

Interestingly, the findings also reveal that whilst the debit card is experiencing a hike in usage, credit card spending at retailers has plateaued over the last three years. This suggests that people are tending to prefer a 'pay now' approach as opposed to a 'pay later' option, when at the tills.

Sandra Quinn of APACS makes the point that as retailers are increasingly deciding to stop accepting cheques, it is expected that a large proportion of those payments will migrate to debit card payments. This will simply accelerate a change that is well underway, given over the last three years debit card spending rose 31% and cheque spending fell 33%.

"We are becoming increasingly reliant on our plastic cards at retailers as they offer us convenience, speed and access to services, such as the cashback facility, which other payment options cannot provide. Different situations suit certain payments and it seems that the high street is truly the place for the debit card."

12 May 2008 © Moneyextra.com

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