Card Payments Dominate as Online Shopping Soars

Monday, June 8, 2020 - 16:09 by Graham Miller

Last year saw 51 per cent of all purchases in the UK conducted using a payment card of some sort, with a combination of the growth of safe shopping online and the popularity of contactless payments for in-store use helping to buoy this trend.

This is according to a new study from UK Finance which covered tens of billions of transactions carried out both online and on the high street.

Analysts pointed out that in addition to the growing interest in e-commerce, another factor which shaped shopper payment habits was the fact that more and more retailers are choosing to accept payments by card as cash falls out of favour.

The study also found that over 80 per cent of people took advantage of some form of remote banking technology, including a mixture of web-based and telephone services.

Report spokesperson Stephen Jones said that with payment cards dominating, it was important to remember that there has never been a time at which consumers in the UK have had as many different options for conducting financial transactions.

Jones also pointed out that while these figures relate to sales made in 2019, they are an indication that the country was actually quite well prepared for the arrival of the current pandemic, at least in terms of providing alternatives to cash payments and more flexibility to consumers for managing their finances remotely.

Indeed, it is thought that the effects of COVID-19 will have effectively catalysed the uptake of online shopping, online banking and other services which do not require visits to bricks and mortar locations.

Businesses and institutions of all types have been quick to jump at this opportunity to digitise their services and solutions further, giving consumers additional options and helping out the most vulnerable.