Credit, Collections & Insolvency News
Analysis of the latest debit card data from Lloyds Bank has found that as the UK approaches one year living with Covid-19 pandemic restrictions, 55% of customers’ money was spent online by the end of February 2021, compared to 38% in February 2020.
For those who continue to spend away from their homes, the median distance travelled has reduced by 1.2km over the course of the pandemic, from 3.9km to 2.7km. When using their debit card, roughly 79% of all transactions are now by contactless payment, up from 68% in February before the first lockdown. In response to the pandemic, the contactless limit was raised from £30 to £45 from 1 April.
Similarly, the amount withdrawn from ATMs on debit cards has also fallen dramatically since lockdown, down a third (33%) compared to the year before.
Gabby Collins, Head of Payments at Lloyds Bank, said “The pandemic has fundamentally changed where and how we have spent our money over the last 12 months.”
“One of the most visible effects of non-essential shops, pubs and restaurants being closed is the huge shift to online. Businesses have adapted to meet consumer demand, meaning over half of all spending is now online, up from just 38% in the months before. When we have shopped in store, it’s been 1km closer to home in a boost to local high streets.”
“Looking ahead, as the vaccine continues to be rolled out across the UK, those businesses who have welcomed few, if any, visitors will be willing a smooth opening by June. We know that demand is there; spending on holidays alone spiked 109% on the announcement of the government’s roadmap out of lockdown.”
“We’ll have to see whether online spending behaviours set in once people are given the opportunity to visit their favourite places again. We think we could see a spending spree, when people are reunited with friends and family.”