WA30

Plastic overtakes cash for popular payments

Plastic is set to overtake cash as the UK’s most popular method of payment, according to a new report.

The study by the Association for Payment Clearing Services (Apacs) concludes that in 2004 plastic card payments will outstrip cash payments for goods and services for the first time.

In 2003 there were some £243.9 billion worth of plastic card payments, and this is expected to grow to £269 billion in 2004, overtaking cash payments of £268 billion. Debit cards lead the growth, accounting for 64.9 per cent of plastic card transactions in 2003 .

Interestingly, despite the growth in the use of plastic, credit card fraud actually fell for the first time in eight years, to £402.4 million, and the UK hopes to reduce crime even further with its world-leading £1.1 billion investment in the chip and PIN initiative.

The report concludes that the UK is increasingly dependent on card payments. "Without plastic cards our society would virtually grind to a halt," it says.

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