Cash is no longer King as Ireland’s love affair with card spending grows

With Christmas parties and nights out now a distant memory, what can be learnt from our spending patterns during the busiest and the most expensive time of the year? Festive spending in Ireland witnessed debit card transactions growing five time faster than credit cards.

Data released by payment services company New Payment Innovation based on transactions processed, shows debit card spending in 2019 rose to 81.96%, up from 61.9% in 2018. This trend suggests that Irish consumers are being more cautious about their spending habits and avoiding getting into credit card debt.

The figures also reveal that the average transaction on a debit card fell sharply from € 54.57 to €35.74 over the past year, showing just how quickly debit cards are taking over from cash as the preferred method of payment, even for smaller value purchases. The surge in popularity of card payments is also being driven by the very widespread availability of payment terminals with contactless payment capabilities as standard.

“With the seasonal Christmas spending spree behind us, and concern around Brexit’s impact on the Irish economy temporarily reduced, the focus now shifts onto what impact, if any, the outcome of the general election will have on Irish consumer sentiment this year. Irish consumers also seem to be getting more risk averse and cautious, based on their marked preference for using debit rather than credit cards. The decline in average transaction values demonstrates the speed with which we’re all embracing contactless and other innovative new payment technologies.” said Mike Moore, General Manager, New Payment Innovation Ltd.

Interestingly, when it comes to more expensive items, credit cards were still the preferred mode of payment. While average transaction values fell for debit cards, the average purchase using a credit card rose sharply from €58.46 to €76.23.

For many shops and restaurants who see a post-Christmas slump in spending, Valentine’s Day traditionally signals their first relief from any January blues they may have suffered. As for anyone with romance on their minds, expect to see cards being used instead of cash this Valentine’s night, with bigger ticket items probably requiring the services of a credit card!