Shift to cashless society
Cards used for over half of payments for first time
Cards are now more popular than cash (pic: Terry Murden)
Card and contactless payments last year accounted for more than half (51%) of all payments in the UK for the first time, hastening the move towards the cashless society.
The number of contactless payments across debit and credit cards increased by 16% to 8.6 billion.
Debit cards were the most used payment method, with 7 billion of the 17 billion total being contactless. Use of credit cards rose by 7% to 3.3 billion payments.
UK Finance says the shift may have helped prepare customers for the changes they have faced during the coronavirus lockdown when they have been discouraged from handling cash and have bought more items online.
Supermarkets were the most popular place for contactless spending in 2019.
Additionally, 48 million adults in the UK bought goods and services over the internet in 2019, as online shopping continued to increase across all age groups with nearly four-fifths of those aged over 65 (79%) shopping online.
Cash payments fell by 15% to 9.3 billion payments, although cash was still the second most popular payment method in the UK after debit cards.
The number of people who were not using cash or using cash just once a month has more than doubled in two years (3.4 million in 2017 and 7.4 million in 2019).
Young people are leading the way in this respect, although there are people of all ages who rarely use cash, including 7% of those aged 65 or older using cash once a month or less frequently.