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Plastic card spending on the up
  
1st January 2010
0 comments 0 comments | 1194 views 1194 views
  
Plastic card spending on the up

New figures have revealed that more people have spent money on their plastic cards this Christmas than ever before.

Published by Barclaycard, the statistics show that December 23rd was the busiest day for spending on debit and credit cards, with purchases totalling £497 million.

After Christmas, the most activity was seen on December 29th, when collective card purchases amounted to £376 million.

Commenting on the figures, Marc Pettican, head of sales at Barclaycard Global Payment Acceptance, said: "Our retailers have seen an increase in turnover compared to the same period last year with over £4 billion being spent.

"We've also seen a stronger post-Christmas performance as shoppers take advantage of the sales discounts and consider the effects of the imminent VAT increase."

The total turnover on plastic cards between December 19th and 31st was £4,085 million, Barclaycard claimed, marking a 2.4 per cent increase on the same time last year.

Online retailers saw £9.5 million of sales on Christmas Day alone when compared to £8.1 million for December 25th 2008.

These figures, however, will not come as a surprise to many, as the online shopping phenomenon well and truly took over in 2009.

The Online Business Index from eBay recently found that 51 per cent of internet-based companies expect a stronger Christmas in 2009 than last year and therefore ordering more stock.

It discovered that Christmas accounts on average for 19 per cent of annual turnover for online businesses.

A spokeswoman for the company said: "eBay believes there are three factors which are crucial to increased online sales: selection, value and trust."

Still, it seems that people are keen to get their hands on electrical and DIY items, as the Barclaycard research found that the average plastic card transaction for Boxing Day totalled £72.46.

With VAT set to rise to 17.5 per cent tomorrow (January 1st), it is yet to be seen how spending will be affected.ADNFCR-1789-ID-19535983-ADNFCR


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