Monthly UK Card Transactions Hit 'Major Milestone' of One Billion

The number of debit and credit card transactions made in a single month passed one billion for the first time in August, according to the UK Cards Association.

The industry body said that UK consumers made 1.006 billion transactions using their debit and credit cards in the UK in August, up by 9.2% on the same month in 2013.

The milestone means that there are now more than 375 card transactions made every second in the UK.

"A billion card transactions in a month is a major milestone and a clear indicator of the transformation in how we all spend," said Richard Koch, head of policy at the UK Cards Association.

"Rather than walking around with wads of notes or pockets full of coins, we're increasingly choosing to use a card instead.

"With the rise in contactless transactions as a convenient way to make smaller payments, and online shopping too, it's debit cards in particular that are leading the rise."

"As the growth in the volume of transaction continues to outstrip the rise in value, the average card transaction amount fell by 15p between July and August, down to £47.14 ($75.83, €59.85)."

The UK Cards Association said that the new figures reflect the growing trend for consumers to choose cards over cash for purchases.

At the same time debit cards are increasingly the preferred method, with the growth in both the number and value of transactions increasing at a faster rate for debit than for credit cards.

In August, 774 million purchases were made using a debit card, up 9.5% from the same time in 2013, compared with 232 million purchases made with a credit card, an 8.4% rise.

Overall spending on debit cards grew at 7.9% year-on-year, to £33.6bn, nearing double the growth rate of credit card expenditure, which increased by 4.3% to £13.7bn.