Card spending data published today by UK Finance reveals more
Christmas shopping was done online in December 2020 than during
any previous Christmas, as continued coronavirus restrictions
saw people move their festive spending online.
Online card spending accounted for 33.8 per cent of the total
value of credit and debit card spending in the UK – worth over
£21.7 billion – compared to just 28 per cent in December 2019.
The average value of online transactions stood at £80.50,
compared to just under £72 the previous year – as people made a
larger number of more expensive purchases online ahead of
Christmas and in the following Boxing Day sales.
The number of contactless card payments continued to grow as
people took advantage of the higher £45 limit for transactions.
The total value of contactless payments in December reached
their highest recorded level at £12.2 billion. This reflected a
64.7 per cent increase compared to December 2019.
Total card spending reached £64.4 billion in December 2020, 9.5
per cent higher than the previous month and 0.7 per cent higher
than the year before. In total, 1.7 billion debit and credit
card transactions were made in the UK in the month, 12.1 per
cent more than in November, but 9.6 per cent fewer than in
December 2019. UK Finance data also shows that outstanding
balances on credit card accounts fell by 16.8 per cent in the
twelve months to December. This was the fifth successive month
in which repayments have outstripped borrowing, and the largest
drop over a twelve-month period since the pandemic began. This
can be attributed to people choosing to pay off debt or reduced
usage of credit facilities.
Eric Leenders, Managing Director of Personal Finance,
UK Finance, said:
“December 2020 saw, for the time of year, a record proportion
of shopping carried out online, as coronavirus restrictions
forced more people to do their Christmas shopping from home
than on the high street. At the same time, the value of
contactless payments reached a record high in December, with
customers taking advantage of the higher £45 payment limit.
“Overall card spending in December 2020 was higher than the
year before, while aggregate credit card balances continued to
fall in the run up to Christmas, reflecting the increased
levels of household savings for those who have been less
financially affected by the pandemic.”
Notes to editors
- UK Finance is the collective voice for the banking and
finance industry. Representing more than 250 firms across the
industry, we act to enhance competitiveness, support customers
and facilitate innovation.
- Full data tables are available here.
- The banking and finance industry has put in place a clear
plan to help Britain through
5. Please note that data on UK cardholders is different to data
on card activity in the UK. Data on UK cardholders refers to
transactions made either inside the UK or overseas on cards
issued to UK residents and reported by card issuers. Data on
card activity in the UK refers to transactions made in the UK
only, both on UK-issued cards and cards issued overseas, this
data is provided by acquirers.
6. A summary of our annual UK Payment Markets 2020 Report
containing detailed analysis of the use of all types of
payments in the UK, can be found here.
7. The quarterly Household Finance Review containing analysis
and economic commentary on household finance in the UK, can be
found here.
8. The monthly credit card data has been re-stated back to
January 2019 to increase our market coverage to 97 per cent
providing a more representative picture of the credit card
market.
