It has been forecast that consumers will spend £53 billion this Christmas.
According to predictions made by Apacs, the trade organisation of the payments industry, there will be a 4.2 per cent rise on the amount spent last Christmas, when shoppers bought £50.8 billion worth of goods.
This Christmas, Apacs said it expected £34.1 billion to be spent using cards, up 9.9 per cent on 2006.
Almost two thirds of that – £22.4 billion – will go on debit cards, with credit cards accounting for just £11.4 billion.
Credit cards have lost some of their allure for consumers, and Apacs is not predicting much of an increase on the level of credit card expenditure seen during last year’s festive season.
The only form of shopping that will enjoy a boost in credit card spending is the internet.
Total online purchases are forecast to reach £5.6 billion in December.
Sandra Quinn of Apacs said: “Whether buying the turkey or stocking fillers, we’re most likely to be using our debit card to pay for them this Christmas, continuing the ongoing trend of pulling out the debit card in preference to our credit cards, cash or cheques.”
Ms Quinn added: “The one exception is online where we are much more likely to use our credit cards, which makes sense because of the extra consumer protection they provide.”
Date:16 November 2007
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