Credit card spending fell by 50% at start of lockdown
Data published by UK Finance has revealed that credit card spending fell by 50% in the first month of the coronavirus (COVID-19) lockdown.
The value of credit card transactions fell to £8.7 billion in April 2020, half the value when compared to April 2019.
UK Finance said that limited opportunity to spend in shops due to the COVID-19 lockdown was partly to blame. However, many card transactions were made online during April: 34.3% of the total value of debit and credit card transactions was made online, up from 29.6% in 2019.
Spending on debit cards ‘remained robust’, UK Finance found. The total value of debit card transactions in April 2020 rose by 0.9% when compared to April 2019, despite the number of debit card transactions in April 2020 being 5.1% lower than in April 2019.
‘The COVID-19 crisis has significantly changed how, where and when people spend their money,’ said Eric Leenders, Managing Director of Personal Finance at UK Finance.
‘The banking and finance industry has put in place a number of measures to help customers adapt to this new economic environment and pay in a way that suits them. This includes increasing the contactless limit to £45 and offering deferrals on credit card repayments.’
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