Use of debit cards grew by 13 per cent in 2007, outpacing other forms of payment.
More money was transacted on debit than on any other type of card spending last year, research released today by payments association APACS shows.
The firm's annual The Way We Pay report found that 62 per cent of total expenditure on plastic - £221 billion - was made via debit card in 2007, while the spend for credit cards increased to £133 billion.
This means that, once more, more was transacted on plastic across the year than through cash (£265 billion) or cheques (£194 billion). Revealingly, these two methods of payment have increased by just 0.4 per cent and declined by one per cent respectively since 2006; this compares poorly with the 13 per cent and six per cent increases registered by debit and credit cards across the 12 months.
"Over the past three years we've seen a pattern emerge: debit cards have increasingly become consumers' first choice over other options, such as cash, cheques and credit cards," Sandra Quinn, director of communications at APACS, explained. "Interestingly the report also shows that last year debit cards even gained ground in areas where credit cards have traditionally had a firm hold - particularly on the internet.
"We would, however, continue to remind customers that because of the additional consumer protection benefits credit cards provide, you may find a credit card to be a more sensible choice online."
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