Cash no longer king as debit cards took over in 2017

There were 13.2 billion debit card payments in 2017 - eclipsing the 13.1 billion payments made in cash, according to UK Finance.

The body said debit card use overtook cash for the first time as the most frequently used payment method in the UK in the final quarter of 2017.

The tipping point happened a few months earlier than it had previously forecast.

The boom in contactless payments across the UK is a key driver of the growth of debit card use, its UK Payment Markets report said.

There were 5.6 billion contactless payments made last year on both debit and credit cards combined.

UK Finance said nearly two-thirds (63%) of people in the UK now use contactless payments.

The average adult made nine such payments per month in 2017 - up from five in 2016.

By 2027, the average adult is expected to make 22 contactless payments per month.

By the end of 2017 there were nearly 119 million contactless cards in circulation.

The most popular location to make contactless payments during 2017 was at the supermarket, with over a third (38%) of all contactless payments being made in these stores.

People aged 25 to 34 were the most likely group to use contactless cards last year, with 77% of people in this age group making contactless payments during 2017.

Whilst people aged 65 or older are less likely to make contactless payments, more than half of this age group made contactless payments during 2017, the report said.

UK Finance said that last year, around 3.4 million people hardly used cash at all, relying on cards and other payment methods to manage their spending.