If ever there was a time to start accepting debit cards and credit cards then this is it. Over the last decade it appears that the UK has started to enjoy a boost in spending using debit cards, all this despite the gloom of the recession.
What are the consumers spending their money on?
According to recent studies by the Daily Mail, UK consumers are spending more money on leisure activities including eating out, drinking and holidays. The Daily Mail and Payments Council estimate that the average person’s disposable income for leisure has doubled from 9% in 1999 to 18% in 2009.
As we move towards a cashless society payments by debit and credit card in pubs and restaurants in particular are fast becoming the norm. Spending is made easier as payments by card eliminate the need to always carry cash. By taking the hassle out of cash payments, combined with longer opening hours and later licenses for many social venues, it is no wonder that leisure spending has increased dramatically.
Why are we witnessing increased spending?
Studies suggest increased spending could merely be a sign of the changes in payment processing. More and more businesses are accepting debit and credit cards and installing Chip and PIN machines on their premises to suit their customers’ needs. Payment by card is easier than going to a bank to get cash and it’s also a lot safer these days than carrying cash. Debit cards payments accounted for more than 44% of retail sales in 2009 which has already exceeded payments by cash.
Is there a point to this?
There certainly is. This is pertinent because of the change in retail payments from cash use to debit card use. With increased retail activity it is clear to see to anyone who runs a business that debit card acceptance is fast becoming an essential business tool.