Brits are sticking with debit cards for now, despite cryptocurrency hype

By Puja Sharma

Despite the latest news reports citing plunging crypto prices a quarter (25%) of Brits would like Amazon to offer cryptocurrency as a payment option.

The Cryptocurrency on the High Street Report by trusted savings site VoucherCodes.co.uk, analyses the UK’s attitudes and spending behaviors towards the virtual currency. It reveals that over a third (34%) of people now own a form of cryptocurrency.

When looking at which top UK retailers Brits are keen to spend their cryptocurrency with, it’s every day retailers top the charts. Tech giant Apple takes second place, with 14% of people wanting the option to buy their latest iPhone and accessories with digital currency. However, it’s not just tech that people want to spend their hard-earned digital coins on as one in ten (10%) state they’d like to purchase their weekly shopping in Tesco and Asda and book flights with British Airways using cryptocurrency.

Research shows the nation is now buying essential items and commodities with its cyber cash. One of the most popular purchases amongst Brits is clothing, with 13% decking themselves out in the latest fashions using their crypto. But it’s not just the everyday items making it to the checkout, the same amount of people (13%) also used money from their digital wallets to purchase the property.

UK Finance, a trade body representing the United Kingdom’s banking and financial services sector, published a report on the current state of the country’s payments market. According to the report, a total of 40.4 billion payments were made in the U.K. in 2021, representing a return to pre-pandemic payment volumes from the 2020 fall experienced nationwide due to lockdowns.

Overall, debit card payments remained the U.K.’s preferred payment method, and after a decline in 2020, payment volumes rebounded in 2021 to hit a total of 19.5 billion, the equivalent of almost half (48%) of all payments made in the country last year.

And if current trends continue, the report projects that debit card payments would exceed 24 billion payments by 2031. Overall, card payments in the U.K., including credit cards, made up 57% of all payments last year, the report found. Around 97% of British adults owned a debit card while 66% owned a credit card. The latest data investigation into the U.K.’s spending preferences found that card payments accounted for nearly 60% of all in-store transactions. In 2021, the growth of contactless payments also outpaced the growth of card payments in general, increasing by 36% from 2020.

The UK Finance report puts this growth down to several factors. These include an increase in the contactless limit in 2021 from £45 to £100; the continued rollout of card acceptance devices among smaller businesses; retailers continuing to pursue contactless-first policies that were implemented as a protective measure against the spread of COVID-19; growing consumer trust in the technology; and the increased popularity of contactless mobile wallets.

Looking ahead to the future crypto landscape, a quarter (25%) of Brits think crypto will be the future of payments and the average person is willing to invest £593 in cryptocurrencies. However, when looking at differences in generational attitudes, it’s clear that younger generations are more convinced by the new currency than those who are older. Those over the age of 55 are only willing to invest £213 on average, 462% less than 18-24-year-olds who would be willing to contribute a hefty £1,197.

Anita Naik, the Savings Expert at VoucherCodes.co.uk, said, “It’s clear from our Cryptocurrency on the High Street Report that consumers are embracing the crypto phenomenon. A large number of Brits already own digital currency and feel comfortable using this to purchase both retail and big-ticket items such as a house.

“With some major retailers such as Microsoft, Shopify, and Etsy now accepting crypto as a form of payment, high street, and online retailers appear to be adapting to consumer needs. There is a distinct appetite amongst the public for the currency to be more integrated into everyday life and everyday purchases.

“However, before investing any money it’s important to do your research. Having a robust understanding of how crypto works and the benefits and drawbacks of using it will enable you to gather the necessary tools and information to make a calculated decision.”

Key Takeaways

• Amazon, Apple, and British Airways top the list of UK retailers Brits would like to spend their digital currency with
• Over a third (34%) of consumers now own cryptocurrency
• 13% of Brits have used their cyber cash to purchase clothes
• An increase in the contactless limit in 2021 from £45 to £100; the continued rollout of card acceptance devices among smaller businesses
• Debit card payments remained the U.K.’s preferred payment method