UK Finance has just released its card spending update for August 2020. The figures demonstrate and confirm the increasing use of both contactless and debit cards as a percentage of total card usage by consumers.
During August, there were 1.2 billion debit and credit card transactions undertaken in the UK, which is 1.3% fewer than in July and 27.7 % fewer than in August last year. The total spend of £51.6 billion was 3.8% less than the previous month and 14% less than last August.
In terms of transaction volumes, contactless payments accounted for 45% of all credit card and 62% of all debit card transactions during August.
Of the total debit and credit card transactions, there were 709 million transaction undertaken using contactless, which is an increase of 7% more than in July but 2.3% less than the 726 million last August. The total value of contactless transactions was £8.2 billion in August, a 3.1% increase from July and a 19.3% increase on the figures from last August of £6.9 billion, reflecting the impact of the increase in the contactless spending limit.
The number of contactless credit card transactions was 14.6% higher than in July but 17.2% lower than last August. The number of contactless debit card transactions was 5.9% higher than July and 0.4% higher than last August.
Overall, total debit card usage by UK cardholders in August showed a 3.9 % increase in transaction volumes compared to the previous month and 2.5 % more than in August last year. Although total spend was 1.2% less than in July it was nevertheless 12.5% higher than last August, showing a definite increase in usage.
It is also interesting to note that outstanding balances on credit card accounts have contracted by 12.6% over the twelve months to August, as a result of repayments being greater than new borrowing in the year – possibly as consumers attempt to reduce their borrowings in the uncertain times that the coronavirus crisis has created.
It is always fascinating to review the trends in payments but never more so than this year in the light of the pandemic and its impact upon consumer spending behaviour and patterns.
Savantor services are tailored to Client needs based on our core service areas
Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe
View more
Find out more from our Savantor brochures, MarketEye back copies and Industry opinion
Collateral Market Eye News & Views Sign Up to receive MarketEye
"Disciplined methodology and effective teamwork, guided by Savantor's migration expertise and operational knowledge, were the hallmarks that led to the resounding success of this project, enabling us to maintain and develop our business capability."
Robert Lambert, Head of Cards Strategy - Permanent tsb bank - Ireland
"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."
Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland
"Savantor did a superb job in confirming what we believed was an area of weakness. The detail we now have will enable us to agree internally what we need to do to improve structure, control and income. Nationwide management were very impressed with the quality of the Savantor team."
Adam Slater, Senior Manager - Banking - Nationwide Building Society - UK
"The expertise provided by Savantor has greatly helped us evaluate our risk position and to take the right steps in managing our future risks. Strong, disciplined planning and an ongoing willingness to work closely with our staff played an enormous part in making this a very successful well-delivered project which will greatly help us in achieving our business goals."
Mark Healy, Chief Risk Officer - NEOVIA Financial - UK
"Savantor's support in our platform selection process has enabled us to sustain our profitability and positioning for the future. Their advice and guidance was essential to our decision-making."
Robert Lambert, Head of Cards Strategy - Permanent tsb bank - Ireland
"In moving our new initiative into reality, we required specialist payments knowledge and forward thinking in the retail sector. Savantor supplied this and provided very effective guidance throughout. We enjoyed working with them."
Sophie High, Head of Innovation Delivery - Cancer Research UK
"OP-Pohjola Group has used Savantors help in numerous different specialist projects differing from risk assessment to management tool creation to transaction analysis. We have been very satisfied by the quality of the service provided by Savantor's experts."
Kai Lindstrom, Head of Acquiring - OP-Services Ltd - Finland
"Savantor did an absolutely superb job for us on the Collections programme. The professionalism, hard work, courtesy and tenacity of their experts is a credit both to the individuals and to Savantor."
Peter O'Dea, Senior Manager - Collections Department - Permanent tsb bank - Ireland
Send us a support request and one of our specialists will be in contact to assist you.
Register your CV with us and gain access to a range of job opportunities through our online job search portal.
