APACS: Payments industry unlocks the truth about the way we manage money

For immediate release: 28 December 2007

APACS Myth Buster


Myth: People only use cash for small value items

Fact: Of all payments over £50, we are more likely to use cash than credit cards


Myth: People don’t pay the monthly balance on their credit card

Fact: 68% of people usually or always repay their credit card balance in full


Myth: Over 65s don’t use online banking

Fact: The over-65 age group is one of the fastest growing groups in terms of online banking users


Myth: No one uses cheques anymore

Fact: There is almost the same number of payments made by cheques as by credit card



Payments industry unlocks the truth about the way we manage money

New APACS report lifts the lid on ten common payment myths

APACS, the UK payments association, has today (28 December 2007) published a new report – Payment Myths – that uncovers the facts behind payment trends in Britain. The booklet uses statistical evidence to help consumers better understand the payment options available to them and offers advice on the best ways to manage their finances; no matter what payment method they use.

The Payment Myths report uses APACS statistics to show examples of the way we use cash, our susceptibility to fraud and the new demographic make up of online bankers – to name but a few.

Sandra Quinn, director of communications at APACS, said:

“The Payment Myths report offers some interesting insights into payment behaviour amongst British consumers and looks to shed light on some common misconceptions.”

“Despite growing acceptance and familiarity with the variety of payment methods available to consumers today, common stereotypes remain. While new technology means we can now bank online 24 hours a day or have our groceries delivered with the click of a mouse, traditional methods like cash and cheques continue to endure.”

The Payment Myths report is available to download from the APACS website – www.apacs.org.uk

ENDS

For further information contact the APACS Information Office:

T: 0870 420 3208 E: apacs@fourcommunications.com

APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. In a nutshell we help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as direct debits, salary payments and online/phone transactions. We champion the fight against banking fraud and twice a year we publish figures on payment industry fraud losses.

Here is a quick reminder of some of the key payments stories of 2007



January

-Payment habits could be deduced from star signs

February

-Celebrated the first anniversary of chip and PIN

-Spending on plastic over December 2006 reached £31bn

March

-The Bank of England issued the new £20 note

-Fraud losses fell 3% on the previous mid year figures

-The industry celebrated 15 years of ‘The Banking Code’

April

-The Dedicated Cheque and Plastic Crime Unit celebrated its 5 year anniversary- since its inception the unit has prevented fraud losses to the tune of £130 million

- Changes were introduced to fraud reporting

May

-Marked the 10th anniversary of online banking

June

-Celebrated the 20th anniversary of the debit card and the 40th anniversary of the cash machine

July

-Witnessed record spending on plastic cards - with figures topping £321 billion for 2006

August

-Online banking usage amongst over 55s revealed as having increased by 425% in 5 years

- Observed the fastest decline in cheque usage- cheques fell by 8% in 2006

September

-APACS’ Card Payments Group signed two new members

October

-Fears that the postal strike could prevent some bill payments from being paid on time

- APACS research revealed payment habits across Great Britain

November

-Changes were introduced to the cheque clearing process in order to offer clarity around clearing timescales and provide extra protection against fraudulent cheques

-The House of Lords ruled that Section 75 applies to overseas claims

- APACS and the UK Petroleum Industry Association spearheaded the National Card Fraud Prevention Campaign Week

December

-Online shopping was forecast to exceed £5 billion in December



For more information, please visit www.apacs.org.uk/media_centre

Michelle Meyer
Press Officer, Corporate Communications

APACS - The UK Payments Association
Mercury House
Triton Court
14 Finsbury Square
London
EC2A 1LQ

T. +44 (0)20 7711 6316
F. +44 (0)20 7256 5527
E. michelle.meyer@apacs.org.uk
Media Enquiries: press@apacs.org.uk