Rise in contactless cards pushes cash into second place
DEBIT card payments overtook the number of cash transactions for the first time last year, a trade association have said.
There were 13.2billion debit card payments in 2017, compared with 13.1billion using cash, according to UK Finance.
They said that about 3.4million people hardly used cash at all.
The boom in contactless payments has led to an increase in debit cards being used instead of cash.
There were 5.6billion contactless payments made last year on debit and credit cards combined.
UK Finance said nearly two-thirds – 63 per cent – of people in the UK now use contactless payments.
The average adult made nine such payments per month in 2017 – up from five in 2016.
By 2027, the average adult is expected to pay by contactless card 22 times a month.
By the end of 2017, there were nearly 119million contactless cards in circulation.
People aged 25-34 were the most likely to use them. But half of those aged 65 or older also followed the trend.
UK Finance said that while cash use is expected to continue to fall over the next decade, it is expected to retain its place as the second most popular method of payment.
Stephen Jones, chief executive of UK Finance, said: “We’re far from becoming a cash-free society. Despite the UK transforming to an economy where cash is less important, it will remain a payment method that continues to be valued.”