Credit Card Spending Rises

5th July 2007

Total spending on credit cards rose by over 152% over the last decade according to the latest figures released by APACS, the UK payment association. UK consumers spent £50 billion on credit cards in 1996 and £126 billion on credit cards in 2006.

The total value of all plastic card payments received by UK merchants, retailers and service providers has more than trebled in the last ten years, according to the report. Cards, including debit cards, now account for just under one third of total consumer spending.

In 2005, credit and debit cards exceeded cash in all retail spending for the first time and the gap between cards and cash accelerated in 2006 with cash spending of £274 billion and credit and debit card spending of £321 billion.

"The last ten years have seen a rapid rise in the popularity of plastic, with debit cards showing particularly strong growth. Consumers enjoy the ease and convenience plastic cards bring, and today most retailers and supermarkets take plastic, as do an increasing number of professional service providers", said an APACS spokesperson.