Growth in the volume of debit and credit card purchases continues to outstrip increase in value as consumers use their cards more frequently for lower value payments, according to the latest figures from The UK Cards Association.
The number of purchases grew 9.2% year-on-year in June, rising to 993 million in the month. At the same time, total spending on debit and credit cards increased at the lower rate of 7.2%, totalling £47.0 billion in June.
This means the average transaction value on a payment card has fallen by £1.40 over the last year, down from £48.91 to £47.51 in June 2014. The average debit card transaction is now £43.70 and for credit cards it is £60.13.
Richard Koch, Head of Policy at The UK Cards Association, said:
“We’ve seen the average value of a card transaction drop over the last year as consumers increasingly choose to use their cards to pay for smaller purchases. In the retail sector, the average shop is now less than £34 – an increase in small transactions online and the use of contactless cards for lower, everyday sums is partly behind this significant trend.”
The number of monthly contactless transactions has more than tripled in the last year, with consumers spending £146.1m using their contactless cards in May 2014. The average contactless transaction is £6.60.2
Monthly debit card spending (£33.2bn in June) continues to grow faster than credit card spending (£13.8bn) – both up by 8.2% and 5.0% respectively.
To view the full press release, please click the link below.