The amount spent using debit, store and credit cards was £470 billion in 2005 – double that of 2001, according to a new report.
Some 7.62 per cent higher than 2004’s figure of £437 billion, the research from market analysis firm Datamonitor also found that 60 per cent of all high street transactions were made using debit and credit cards.
The report predicted that spending on cards is set to increase to £639 billion by 2010. The biggest rise was in the value of transactions made using debit cards, which rose from £197 billion in 2001 to £320 million in 2005.
“Consumers continue to grow more comfortable using cards for both day-to-day transacting and borrowing,” said Kieran Hines, Senior Cards and Payments Analyst at Datamonitor.
“The use of credit cards continues to grow over time as they are both accepted as a means of payment and also offer access to a line of pre-approved credit,” he added.
In April 2006, the Office of Fair Trading found that charges for unauthorised borrowing had generated over £300 million a year and set a maximum fee of £12 for exceeding the agreed limit on a credit card.
This article: © Moneyexpert Ltd.