The latest figures from APACS, the UK payments association, show that the debit card retains its popularity at retailers, with spending rising 11 per cent last year. This rise serves as a stark contrast to cheque spending, which declined by 7.5 per cent in terms of value and 13 per cent by volume over the same period.
The statistics, which cover all retail transactions in 2007, show debit card spending at 42 per cent (£109billion) of the total £261billion spent, compared to cheque spending at three per cent (£7.5billion) and cash at 32 per cent (£84billion).
The findings also reveal that while the debit card is experiencing a hike in usage, credit card spending at retailers has plateaued over the past three years.
Says Sandra Quinn, director of communications at APACS: “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, as over the last three years we have seen debit card spending rise 31 per cent, cheque spending fall 33 per cent and cash spending reach a point of equilibrium.
“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.”
