UK Card Payments Surpass £1 Trillion in 2024

The rapid evolution of payment technologies and consumer preferences continues to reshape the financial landscape in the UK. According to recent figures from UK Finance, card payments in the UK surpassed a staggering £1 trillion in 2024. This milestone highlights the growing shift towards cashless transactions and the widespread adoption of contactless technology.

Steady Card Spending with Increased Transaction Volumes

While the overall card spending remained steady compared to 2023, there was a significant rise in transaction volumes. This indicates a growing consumer preference for credit cards and the deepening integration of contactless payments into everyday life. In 2024, UK-issued debit and credit cards were used for 31.4 billion transactions, marking a 4% increase from the previous year’s total of 30.2 billion transactions.

This increase in transaction frequency, coupled with a stable overall spending figure, suggests a trend towards making more payments for smaller amounts. Since 2019, the number of card transactions has grown by 42%, while the total value of these transactions has increased by only 26%. This reflects a notable decrease in the average transaction size, as consumers opt for more frequent, low-value payments.

Dominance of Debit Cards

Despite the rise in credit card usage, debit cards continue to dominate as the preferred payment method. At the end of 2024, there were 163.4 million debit and credit cards in circulation in the UK, an increase from 159.7 million the previous year. Debit cards accounted for £797 billion of spending, although this figure represented a slight 0.8% decline year-on-year.

In contrast, credit card transaction values experienced a 5.3% increase, reaching £249 billion. This includes card purchases, cash advances, and balance transfers, indicating a broader consumer confidence in credit-based spending.

Expansion of Contactless Technology

A key driver of the shift in payment behavior is the continued expansion of contactless technology. In 2024, there were 18.9 billion contactless transactions, a 3.4% rise compared to 2023. The average value of a contactless transaction increased to £15.86, up 1.7%. This growth is driven not only by inflationary pressures but also by consumer comfort in using contactless for a wider range of purchases.

Factors Propelling Contactless Growth

Two key trends are propelling the growth of contactless payments: the increasing adoption of card payments by small businesses and the proliferation of mobile and wearable payment technologies. With more merchants accepting cards for low-value items, consumers are increasingly opting to tap rather than carry cash. This pattern has become deeply embedded in UK spending habits.

“Debit and credit cards continue to be the preferred method of spending for UK consumers,” noted Janine Randolph, Head of Data Management at UK Finance. “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.”

Monthly Spending Trends

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

The dataset distinguishes between UK cardholders and total card activity within the UK, encompassing 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 of the evolving payment landscape in the UK. Consumers are increasingly opting for the convenience of frequent, low-value card transactions, often contactless, over traditional cash payments. As digital wallets and mobile payments gain traction, the transformation of how Britain pays continues to accelerate. This shift not only underscores the importance of adapting to new payment technologies but also highlights the need for businesses to embrace these changes to meet consumer expectations effectively.