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Prepaid and debit cards 'gaining market share'
3 Nov 2009

The UK could have seen the peak of the credit card market, one finance industry expert has suggested.

Commenting on the BBC website's Money Talk section, banking specialist at Defaqto David Black claims that prepaid cards, debit cards and firms like PayPal are "steadily gaining market share".

He also states that this trend could continue further if the credit card - which has been an integral part of many people's lives for a number of years - loses popularity even more.

Indeed, The Way We Pay 2009: UK Cash & Cash Machines report - published by the UK Payments Council this summer - shows that total debit card payments will overtake cash spending in the UK in 2010 if current trends continue.

Some reasons offered by Mr Black for the credit card's suggested demise include its general failure to reward customer loyalty and rising fees.

However, the Defaqto representative indicated that this method of payment still has its place in a cashless society - when a crisis occurs, for example.

"There is a market for the credit card but it looks likely to get smaller," he remarked.