Plastic replaces even small denomination purchases

Debenhams Head of Personal Finance Mike Hazell says: “Cash is still a big part of our lives, but for an increasing number of people, in particular the younger generation who have grown up with cards, plastic is the payment method of choice, even for relatively small, everyday purchases.

“They like the convenience and the benefit that some cards have of reward schemes. Others just don’t like carrying cash. It’s all down to personal choice.”

Our changing attitude to cards has been reflected in statistics showing frequent transactions for smaller amounts now are often put on our plastic. In coffee shops, the total spend on plastic is up 9%, but the average payment made by debit card has dropped to £8.48, compared to £11.20 a year ago.

The pub is another place where cards are increasingly being flashed to pay for a round of drinks. The debit card comes out when the bill comes to just over £20 with the average debit card payment being £22.78. A year ago a typical debit card transaction was £24.58.

The picture is the same in restaurants where overall spending on cards is up 12% and a credit card is now used when the meal comes to an average £36.77. A year ago the typical bill making people reach for a credit card was £39.14.

Even topping up on groceries in the supermarket has seen an eagerness to use a card for smaller purchases with payment by card rather than cash – the debit transaction average is now £26.33 and on credit cards £34.

Debenhams