14/04/2010 - Debit cards trump cash transactions
Debit cards have become the most popular form of spending, research has revealed.
Use of coins and notes in transactions has declined to 59% from 73% over the last 10 years, while spending through debit cards has risen four times to £264 billion last year, the study of payment trends between 1999 and 2009 by the Payments Council found.
The council suggested that coins and notes will be used in less than 50% of transactions in five years' time.
The use of debit cards was more than that of credit cards, while the use of cheques declined at a faster pace than expected.
The council had predicted in 1999 that cheque usage would drop to around one billion in 2009, but the actual number has fallen to 577 million.
Now the council said cheques would become extinct by October 2018, or the volumes would at least halve to 248 million by then.
"By 2050, when today's new workers have retired, cheques look set to be a historical curiosity," it said.
It predicted a future that will use contactless cards, through which people can pay for goods worth up to £15 without using a PIN number.
Eight million cards in the UK already allow contactless payment, which is expected to grow to 30 million by 2012.
Copyright © Press Association 2010
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