Credit, Collections & Insolvency News
New card spending data published by UK Finance has revealed that more Christmas shopping was done online in December 2020 than during any previous Christmas, as continued coronavirus restrictions saw people move their festive spending online.
Online card spending accounted for 33.8 per cent of the total value of credit and debit card spending in the UK worth over £21.7 billion compared to just 28 per cent in December 2019. The average value of online transactions stood at £80.50, compared to just under £72 the previous year – as people made a larger number of more expensive purchases online ahead of Christmas and in the following Boxing Day sales.
The number of contactless card payments continued to grow as people took advantage of the higher £45 limit for transactions. The total value of contactless payments in December reached their highest recorded level at £12.2 billion. This reflected a 64.7 per cent increase compared to December 2019.
Eric Leenders, Managing Director of Personal Finance, UK Finance, said “December 2020 saw, for the time of year, a record proportion of shopping carried out online, as coronavirus restrictions forced more people to do their Christmas shopping from home than on the high street. At the same time, the value of contactless payments reached a record high in December, with customers taking advantage of the higher £45 payment limit.”
“Overall card spending in December 2020 was higher than the year before, while aggregate credit card balances continued to fall in the run up to Christmas, reflecting the increased levels of household savings for those who have been less financially affected by the pandemic.”
