UK Card Payments Surpass £1 Trillion in 2024

In 2024, card payments in the UK exceeded £1 trillion, marking a significant milestone in the shift towards cashless transactions. This trend highlights the widespread adoption of contactless technology and a growing reliance on card-based payments, as revealed by the latest figures from UK Finance.

Overview of Card Payment Trends

While the total card spending remained consistent with 2023 levels, there was a noticeable increase in transaction volumes. This suggests a strong consumer preference for credit cards and a deeper integration of contactless payments into daily life. UK-issued debit and credit cards were used for 31.4 billion transactions in 2024, representing a 4% increase from the previous year's 30.2 billion transactions.

The rise in transaction frequency, coupled with stable overall spending, indicates a growing trend of making more payments for smaller amounts. Since 2019, the number of card transactions has surged by 42%, while the value of these transactions has increased by 26%, pointing to a significant decrease in average transaction size.

Debit Cards Dominate

As of the end of 2024, there were 163.4 million debit and credit cards in circulation in the UK, up from 159.7 million in the previous year. Debit cards continue to be the dominant payment method, accounting for £797 billion of spending, despite a slight 0.8% decline from the previous year.

Conversely, credit card usage gained traction, with transaction values increasing by 5.3% to £249 billion. These figures encompass card purchases, cash advances, and balance transfers, reflecting growing consumer confidence in credit-based spending.

The Rise of Contactless Payments

One of the most significant drivers of this shift in payment behavior is the expansion of contactless technology. In 2024, there were 18.9 billion contactless transactions, marking a 3.4% rise from 2023. The average contactless transaction value saw a slight increase to £15.86, up by 1.7%, indicating not only inflationary pressures but also consumer comfort with using contactless for a broader range of purchases.

Factors Propelling Contactless Growth

Contactless payment growth is driven by two key trends: the increasing adoption of card payments by small businesses and the proliferation of mobile and wearable payment technologies. More merchants are now accepting cards for low-value items, leading consumers to favor tapping over carrying cash, a behavior that seems firmly entrenched in UK spending habits.

According to Janine Randolph, Head of Data Management at UK Finance, "Debit and credit cards continue to be the preferred method of spending for UK consumers. We are using our cards more frequently, particularly making use of contactless transactions, which is being driven by increased card acceptance and also mobile contactless payment."

Seasonal Spending Patterns

The monthly data reveals consistent card activity throughout the year, with notable peaks in March, July, and December. December was the strongest month, with debit card spending reaching £70.8 billion and credit card spending hitting £21.9 billion, spurred by seasonal retail activity.

The dataset distinguishes between UK cardholders and total card activity within the UK, capturing both domestic and overseas spending. These figures represent over 97% of the UK credit card market, offering a comprehensive snapshot of consumer payment trends.

Conclusion

The data paints a clear picture: UK consumers are gravitating towards convenience, favoring frequent, low-value card transactions—often contactless—over traditional cash payments. As digital wallets and mobile payments gain momentum, the transformation of payment methods in Britain continues at a rapid pace. This shift towards cashless transactions underscores the evolving landscape of consumer payments in the UK, driven by technological advancements and changing consumer preferences.