UK consumers spent more online per household than any other country at US$5,900, followed by Norway ($5,400), the USA ($4,500) and Australia ($4,000) – according to the latest findings of a new collated survey based on 2015 figures, according to the UK Cards Association (UKCA).

 

The trade body, which represents financial institutions which act as both card issuers and acquirers says there were 14.8bn card transactions in 2016, equivalent to 40.5m transactions a day, or 469 a second.

 

It adds that three-quarters of this retail spending (76.4%) was made using payment cards, with total card spending in 2016 reaching £298bn ($382bn), compared with £290bn ($372bn) in 2015..

 

DEEP UK SPENDING ANALYSIS

By contrast, the UKCA says that internet spending has jumped by more than a quarter in the last two years with card spending on the internet totalling £154bn ($197bn) in the UK in 2016.

 

This was equivalent to an average of £422m ($541m) a day – up 28% since 2014, when online spending amounted to £120bn ($154bn).

 

The UKCA adds that its analysis shows that one in four card purchases online is on entertainment, with consumers buying cinema and concert tickets, takeaway orders and digital content.

 

UK ONLINE SPEND AT $5,900 LEADS THE WORLD

 

As aforementioned, its figures also show that UK spends more online per household than any other country, at US$5,900 in 2015 – higher than Norway (US$5,400), the USA (US$4,500) and Australia (US$4,000).

 

Breaking down internet spending patterns on debit and credit cards in the UK the report found that a quarter (26%) of all card spending was online last year, up from 22% in 2014.

 

In addition, a total of 1.8bn purchases were made online in 2016 – equal to an average of 150m a month and an increase of 38% on the 1.3bn in 2014,

 

The UKCA says that entertainment sales comprised the highest proportion of all online purchases (26%); although these only account for 7% cent of the total value, reflecting the relatively low cost of digital entertainment such as apps and music downloads.

 

UK ONLINE SPENDING BROKEN DOWN BY SECTOR

In addition, some 41% of in-store card purchases were made on food and drink, with this sector accounting for only 7% of online transactions, while over a quarter (27%) of all online spending by value was on financial services – the highest share of any sector.

 

Breaking spending patterns down further, the report also reveals the dominance of online spending in certain sectors, including travel where nearly four in every ten pounds (37%) was spent on travel online last year, with 54% of all spending on airline tickets made through the internet.

 

Interestingly, the UKCA adds that over the last two years the average card purchase online has dropped by £9 ($11), suggesting that internet shopping is no longer the domain of big ticket items.

 

However, the average e-commerce purchase at £85 ($109) is still more than double that of in-store sales at £38 ($49).

 

 

The full report can be found at the following link: http://www.theukcardsassociation.org.uk/wm_documents/Online%20Card%20Spending%20-%202014-2016.pdf