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British card use up nearly one-quarter since intro of chip and PIN

Also, between 2004 and 2014, transaction fraud dropped by 81.9 million pounds ($116 million), the UK Cards Association said.

February 22, 2016

Four-fifths of transactions at British retailers are now made using debit and credit cards, according to new figures released by the U.K. Cards Association.

In a press release, the association said that when Britain switched to chip and pin in 2006, 55 percent of spending at retailers was made using payment cards, compared with 78.5 percent in December 2015. Of this spending, 10 percent is transacted on contactless cards.

Additionally, the release said, chip and pin has contributed to an 81.9 million pound ($116 million) annual decline in counterfeit card fraud between 2004 and 2014.

Forecasts suggest that the amount spent on debit and credit cards could reach 901 billion pounds ($1.27 trillion) in 2024, the association said.

"Chip and PIN was introduced a decade ago to combat the rising levels of counterfeit and stolen card fraud in the U.K.," said Richard Koch, head of policy at The U.K. Cards Association. "It was the biggest change to consumer behavior since decimalization and it has been hugely successful in tackling counterfeit cards and reducing the threat of fraudsters using lost and stolen cards on the high street. ... It has proven both a huge success and a great foundation for the future."