News & Views - Savantor

Growth of card payments in 2016

Thursday, 16 March 2017

Figures have just been released by the UK Cards Association for card spending in 2016. They show that consumers spent £647 billion using payment cards in 2016 and that there were 14.8 billion card transactions during the year.

Just over three quarters of retail spending (76.4%) was undertaken on payment cards, equating to £298 billion, compared to £290 billion in 2015.

Debit cards were used for the majority of card spending, accounting for £461 billion of sales.

Perhaps not surprisingly, a massive growth was seen in the use of contactless cards during 2016. £25 billion was spent during the year using contactless cards, compared to £7.75 billion in 2015.

The monthly card figures for January underline these trends, with spending on payment cards totalling £57.1 billion, up by £0.5 billion on December’s figures. Year-on-year this is an increase of £5 billion. The total number of monthly purchases reached a new record of 1.3 billion, with the share of total retail sales undertaken on debit and credit cards equating to 77.4% for the month. Spending online accounted for £15.3 billion and 176 million transactions and accounted for 27% of total card expenditure.

The ongoing rise in card usage is explained by the UK Cards Association as being partly driven by the continuing expansion in contactless and online payments together with a slight increase in consumer confidence in the economy.

The rise of contactless is expected to encourage consumers to use this form of payment instead of cash. According to Barclaycard, more than half of payments under £30 in London are tap and pay, and cash volumes are forecast to fall by 30% over the next ten years. Although there are various predictions of and discussions about when cash will die out – the latest being 2043 according to an online casino company – nevertheless it is difficult to envisage a time when the use of cash as a means of payment becomes obsolete across all areas of UK society.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Market Insights

"Savantor did a good job in helping us understand the dynamics of a key growth area for Trionis. Savantor's ability to listen and their degree of commitment have always impressed me. They have been of great help in providing us important market insights and I would not hesitate to work with them again in future."

Ernst Verbeek, Managing Director - Trionis - Belgium

Expert Witness

"After searching extensively for the required industry expert in a complex litigation, Savantor was identified to have the necessary industry knowledge and expertise on a range of complex issues. Savantor provided clear advice and was able to quickly hone in on the key issues, but most importantly, generating pragmatic winnable answers."

Gavin Ingram, General Counsel & VP Strategic Planning - Global Blue - Asia Pacific

Acquirer Specialist Support

"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

Moneris Solutions

"Savantor did an outstanding job of the review and I received nothing but positive feedback on the interaction with our management team."

Jeff Guthri, COO - Moneris Solutions - Canada

EMV Migration Planning

"It was a strategic imperative for the bank to be EMV compliant for our payment cards and the experience that Savantor brought to the company has proved to be invaluable."

Eddie Sweeney, Chief Technology Officer - AIB Bank - Ireland

Card Migration

"I was impressed by the speed with which the Savantor team were able to start delivering and as a team they have made a significant contribution to the success of the Programme."

Bjorn Niels, Programme Director - ABN AMRO Bank - The Netherland

Collections Transformation

"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

Interchange Review

"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

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.