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Card spending data published today by UK Finance reveals
that the proportion of contactless payments continued to
increase in September to reach its highest recorded
level, accounting for 64 per cent of all debit card
transactions, compared to 62 per cent in August. Over
four in ten (46 per cent) of all credit card transactions
were contactless, a small increase on the previous month.
The total number of contactless card transactions fell
slightly by 1.1 per cent compared to August, and was down
by 5.3 per cent compared to September 2019. The value of
contactless spending, however, was 18.1 per cent higher
than in September last year, as consumers continued to
make use of the increased £45 contactless spending limit.
The total value of contactless transactions was £8.2
billion in September, up from £7 billion in September
last year.
Overall, there were 1.1 billion debit and credit card
transactions in the UK in September, a 4.2 per cent
decline compared to August, and 31 per cent fewer than in
September last year. The total spend of £48.9 billion was
5.1 per cent less than the previous month, and 18.3 per
cent less than last September. This can likely be
attributed in part to the introduction of stricter social
distancing restrictions implemented to combat the spread
of Covid-19.
The number of transactions made by UK debit cardholders
reached 1.6 billion in September, a 2.9 per cent increase
on the previous month – and a 6.1 per cent increase on
September last year. The total spend of £58.5 billion was
0.2 per cent higher than August, but 12.8 per cent higher
than last September.
September also saw the UK’s annual growth rate of
outstanding balances on credit cards continue to decline,
contracting by 14 per cent over the previous twelve
months as a result of repayments outstripping new
borrowing in the year.
Eric Leenders, Managing Director of Personal
Finance, UK Finance, said:
“September saw the proportion of contactless debit card
payments hit a record high for the second month in a row,
rising to 64 per cent of total transactions in August.
The value of overall contactless …
… of debit card spending, the annual growth of
outstanding credit card balances continued to contract,
dropping 14 per cent over the year to September as
repayments continued to outstrip new borrowing .”
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