Card payments in the UK surpassed £1 trillion in 2024, according to new figures from UK Finance, underscoring a continued shift towards cashless transactions and the ubiquity of contactless technology.
While total card spending remained steady compared to 2023, the data reveals a notable rise in transaction volumes, a growing preference for credit cards, and the further entrenchment of contactless payments in everyday life.
UK-issued debit and credit cards were used for 31.4 billion transactions last year, a 4% increase on 2023’s total of 30.2 billion.
This rise in frequency – paired with flat overall spend – illustrates a growing consumer habit of making more payments for smaller amounts.
Since 2019, the number of card transactions has increased by 42%, while their value has risen by 26%, indicating a significant drop in average transaction size.
Debit Cards Lead the Way
At the end of 2024, there were 163.4 million debit and credit cards in circulation in the UK, up from 159.7 million the previous year.
Debit cards remain the dominant payment method, responsible for £797 billion of spending – although this figure marks a 0.8% year-on-year decline.
In contrast, credit card usage gained ground, with transaction values rising 5.3% to £249 billion.
These figures include card purchases, cash advances and balance transfers, suggesting a broader confidence in credit-based spending.
One of the clearest drivers of this shift in payment behaviour is the continued expansion of contactless technology.
There were 18.9 billion contactless transactions made in 2024, a 3.4% rise from 2023.
The average value of a contactless transaction grew slightly to £15.86 – up 1.7% – reflecting not only inflationary pressures but also consumer comfort with using contactless for a wider range of purchases.
Contactless Growth
Contactless growth is being propelled by two key trends: the increasing adoption of card payments by small businesses, and the proliferation of mobile and wearable payment technologies.
With more merchants now accepting cards for low-value items, consumers are opting to tap rather than carry cash, a pattern that appears to have become deeply embedded in UK spending habits.
“Debit and credit cards continue to be the preferred method of spending for UK consumers,” comments Janine Randolph, Head of Data Management at UK Finance.
“We are using our cards more frequently, particularly making use of contactless transactions, which is being driven by increased card acceptance and also mobile contactless payment.”
The monthly data shows consistent activity throughout the year, with peaks in March, July, and December.
December, unsurprisingly, was the strongest month, with debit card spend topping £70.8 billion and credit card spend hitting £21.9 billion – buoyed by seasonal retail activity.
The dataset distinguishes between UK cardholders and total card activity within the UK, capturing both domestic and overseas spending.
Notably, these figures represent over 97% of the UK credit card market, providing a robust snapshot of consumer payment trends.
The data paints a clear picture: UK consumers are leaning into convenience, opting for frequent, low-value card transactions – often contactless – over traditional cash payments.
As digital wallets and mobile payments gain traction, the transformation of how Britain pays continues at pace.
To learn more about the UK Payments Market CLICK HERE