-104.jpg)
Online payments reach record levels
APACS together with the IMRG/Capgemini e-Retail Sales Index have announced that December 2008 saw the highest recorded levels of spending online, with online payments reaching £4.7billion.
December figures have contributed to a 25% increase in online spending to reach £43.8 billion in 2008. The majority of this spend was paid for using plastic cards - £21.6 billion spent on debit cards and £10.8 billion spent using credit cards.
Whilst positive, it seems that there is no escape from the credit crunch where online payments are concerned. Spending on credit cards fell 4.8% from 11.3 billion in 2007 to the 10.8 billion figure recorded in 2008. Conversely, the figures show that whilst credit card payments have fallen, debit card payments are rising at a rate of 9.5% per annum. This may suggest that consumers are finding it more difficult to gain credit or more reluctant to use it.
Combined with the fall in average card transaction value, the figures seem to reflect that whilst online payments remain a growth area, they are not immune to the wider economic climate. Consumers are now spending an average of £44.95 per transactions.
Sandra Quinn, Director of Communications at APACs commented:
“Whilst the number of transactions was higher than in December 2007, average transaction values fell, no doubt influenced by price discounting by many major retailers and the VAT cut.
The fall in credit card spending follows the trend we’ve seen over the last four years with customers continually preferring to put most of their card spending on debit card.”
16th February 2009
Print page
