Surge in use of debit cards as restaurant spending up
Shoppers are ditching their credit cards in favour of debit cards.
People are also spending more in restaurants and shops, and opting to pay with plastic.
Expenditure across the services sector was up 15pc, with restaurant and dining transactions increasing by 23pc.
Spending on debit cards rose more than five times faster in June compared with the
expenditure on credit cards.
There has also been a surge in the number of debit cards in issue.
Some five million debit cards are now in the hands of
consumers, according to the Central Bank.
This is the highest number on record. However, around 685,000 cards are not in active use.
Some €5.8bn was spent on debit cards in the year to June.
The Central Bank said: “The total monthly value of new card transactions (including ATM transactions) increased by 6pc on an annual basis to €5.8bn in June. The total value of debit card transactions (including ATM transactions) were 5.4 times the value of credit card expenditure.”
With a debit card you can only use it if you have money in your current account, unlike a credit card where money is borrowed.
Most debit cards now also allow for contactless payments, where the card is waved over a payment terminal without the need to enter a PIN number every time.