For the first time, debit cards have overtaken cash purchases in the U.K.
For the first time, debit cards have overtaken cash purchases in the United Kingdom. Also, more than half of retail buys were made using a card, instead of cash.
For the first time, debit cards have overtaken cash purchases, according to a new BRC report. This is the first time that cash has ceased to be the largest payment category in the United Kingdom. The same analysis also pointed out that last year, more than half of retail buys were made by using a card, instead of cash.
When it comes to the reasons behind the growth of card transactions, the BRC report suggest that investments made by retailers in payment options gave customers more choice but one of the biggest drivers is, according to the same sources, the introduction of contactless payments and the growing number of retailers that have invested in payment technology to accept cards, contactless payments, and new payment applications both online and in store.
Another find of the recent study is linked to the usage of credit cards. According to the data, the number of purchases by using credit has fallen meaning that Brits borrow less to cover their daily purchases.
But the BRC warns that costs are high for retailers to accept card payments and especially credit card purchases. In 2016, retailers still spent more than £1bn accept payments from customers.