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Is Britain falling out of love with the credit card?

Journalist: Laura Miller, Freelance

ended 12. December 2025

Today, The British Retail Consortium (BRC) has published its annual BRC Payments Survey, showing the changing way in which people made payments in 2024. The survey reveals a significant decline in the use of credit cards, from 14.2% of transactions to 12.6%. With higher interest rates making credit cards a more expensive way to shop, consumers turned to debit cards where usage increased from 62.0% to 64.0% of transactions.

While cash usage declined it still remains an important payment method for many customers, accounting for almost a fifth (19.2%) of all transactions, though the average transaction value was significantly smaller than other payment methods. Despite their declining popularity, for larger transactions, consumers preferred using credit cards which offer additional protections for shoppers.

More shoppers were exploring less traditional payment methods than ever before, particularly for larger transactions. This included the use of gift vouchers, PayPal and Buy Now Pay Later.

  • What does it mean that Brits are using credit cards less?
  • What are the risks of shoppers turning to less traditional payment options like BNPL?
  • To what extent are people aware using BNPL can hurt their chances of getting a mortgage?

4 responses from the Newspage community

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Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
I'm increasingly seeing people turn away from credit cards, favouring debit cards and if that helps them manage their finances it's no bad thing. Debt is not inherently bad but mismanaged and it can have dire consequences. It's positive that we have so many choices on how to pay for things but the key is to understanding what you're doing and what it's costing you. Borrowing beyond your means, rarely ends well and buy now, pay later could be a ticking time bomb for those who can least afford it.
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Rohit Parmar-Mistry
Founder at Pattrn Data
Buy Now, Pay Later isn’t financial innovation; it’s practically a prequel to the dystopian thriller In Time.

In that film, time is currency and people live minute-to-minute, constantly borrowing just to stay alive. Buy Now Pay Later is the real-world beta test. The BRC data shows people ditching credit cards, but swapping visible interest for the "seamless" trap of BNPL is dangerous. We’ve used tech to remove payment friction, but that friction was the only thing making us think before we spent.

Now, we’re automating bad decisions. Buy Now Pay Later gamifies debt, turning financial health into a ticking clock. You get the goods today, but you’re trading away your future stability, transaction by transaction. The algorithm doesn’t care if you ever get ahead; it just needs you to keep the cycle running.

We are building an economy where people don’t own their future because they’ve already leased it out to a fintech app. That’s not progress; it’s digital servitude.
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Rob Burgess
Founder and Editor at Head for Points
Whilst it is good if people are moving away from using long term credit card debt to fund day to day expenses, it is arguably foolish for anyone with sound credit, regular income and who is certain that they can clear their bill each month not to use a credit card.

People are leaving cashback or valuable reward points on the table if they use cash or a debit card instead of a credit card. This can be worth up to 1% of the amount spent, which adds up over a year even for average spenders. There is also the valuable Section 75 coverage which provides protection against fraud or faulty products when spending over £100 - insurance you effectively get for free by using a credit card. These are free benefits whilst shouldn't be missed by people who are in control of their spending.
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Colette Mason
AI Ethics Consultant at Clever Clogs AI
I always use a credit card for large purchases for the protection provided and always pay off in full at the end of the month. I can't think why you wouldn't want to do that, having been protected on multiple occasions for transactions that have subsequently gone awry.