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UK debit card spending continues to increase

9th June 2014 Print

A quarter of Brits (25%) with a debit card now use it more frequently than they did 12 months ago, according to research from M&S Bank. This compares to one in five (20%) credit card holders who say they use their credit card more frequently than they did a year ago.
 
The use of debit cards has increased the most amongst 18-35 year olds (38%), followed by those aged 35-54 (21%). Nearly one in five (19%) of those aged 55+ say they use their debit card more frequently than this time last year.
 
More than one in four (27%) debit card holders who do not currently earn rewards on their spending, would switch their main current account if they could earn reward points. This compares to a quarter (24%) of all non-reward credit card holders who would do the same and switch to a reward credit card.
 
More than half (55%) of all cardholders agree they would use their debit card even more if they knew they would get rewards or points on their spending, compared to 46% who would say the same for their credit card.
 
The M&S Bank research reveals that the most popular expense to put on a debit card is grocery shopping, with six in ten (61%) putting the weekly shop on their debit card. Credit cards remain the preferred payment method for holidays, with 38 per cent purchasing them with a credit card compared to a debit card (36%).
 
Of all those who reported an increase in debit card use, almost half (48%) say they prefer this method as it helps them budget more efficiently. The ability to better track their spending is a draw for almost a third (31%), while 31 per cent prefer this method of payment over carrying cash.
 
Sue Fox, CEO of M&S Bank, said:  “We all love rewards and expect to benefit from our loyalty, and rightly so. With the majority of UK purchases now being made by card, people can earn a significant amount in reward points, and the launch of debit card points means people can now earn rewards on both their debit and credit card spending. With so many rewards on offer, and debit card spending on the increase, it’s worth spending a little time to research the card that best suits your needs.”
 
When it comes to credit cards, over a third (35%) say they chose their credit card because it offered more cash back or rewards than other cards they’d looked into; 27 per cent chose their credit card because they bank with the same provider.
 
M&S Bank has recently launched its first current account with no monthly fee; the M&S Current Account. The expanded current account offering follows the successful launch of the M&S Premium Current Accounts   in September 2012.
 
All M&S current account customers earn one point for every £1 spent at M&S using their M&S debit card. M&S Premium Current Account customers also earn three points for every £1 spent at M&S using their M&S Credit Card and one point for every £2 spent elsewhere on their M&S Credit Card.
 
M&S Credit Card customers without an M&S Premium Current Account earn 1 point for every £1 spent in M&S and 1 point for every £2 spent elsewhere.