People splashed out more on debit cards at the start of 2020 than a year earlier as they booked getaways and dined out, according to a major bank.
Lloyds Bank, which analysed customers’ behaviour, found that debit card spending in the first two weeks of January was 3.2% higher than in the same period in 2019.
Its own card spending data between January 1 and 14 2020 revealed that more than £4.3 billion was spent on all goods and services by its customers, over £100 million more than a year earlier.
The peak day for transactions during the period was January 10, which for many was the Friday after the first full week back at work, when £368 million-worth were carried out.
- Holidays, £156
- Restaurants, £12
Gabby Collins, head of payments at Lloyds Bank, said: “In the first two weeks of the year our customers have spent over £4 billion on their debit cards, equating to £310 million a day.”
With January being a popular time to book holidays, just over £275 million was spent on getaways in the first two weeks of the month.
Across the UK, people from the North East of England put the biggest proportion of their debit card spending in the first two weeks of January towards a holiday (7.1%), followed by people in Scotland (6.9%).
Older generations were more likely to put a bigger proportion of outgoings towards a holiday.
As a proportion of total spend, the over-65s dedicated 7.9% of their money to paying for a holiday, compared with 6.3% for 18 to 24-year-olds.
Across age groups, the average spend per transaction on holiday-related purchases in the first two weeks of January 2020 was £156. This includes spending with airlines, holiday agencies, cruise lines and hotels.
While holiday spending overall was down slightly by 1% compared with a year earlier, spending on restaurants was up by 10% on the first two weeks of 2019.
Over £325 million was spent on eating out in the first two weeks of the year.
The average restaurant-related spend, which includes dining out in bars and fast food, was just over £12 per transaction.
Younger generations are most likely to get their cards out for a meal cooked for them – with 18 to 24-year-olds making up 13% of their total spend on restaurants.
For 25 to 34-year-olds, £1 in every £10 of their debit card spend went on restaurants in the first two weeks of the year.
Over-65s put just 4% of their debit card spend towards eating out.
People in London spent the most on restaurants, with 9.6% of their cash going on eating out in the first two weeks of January.
Those in the North West, North East and South East followed closely behind at 7.6%.
Here is the level of holiday spending by nation and region, according to Lloyds Bank customer figures, with the percentage of total debit card spending that went towards holidays in the first two weeks of January:
– London, 6.7%
– North West, 6.8%
– South East, 6.0%
– North East, 7.1%
– West Midlands, 6.3%
– East of England, 5.9%
– Yorkshire and Humber, 6.7%
– South West, 6.0%
– Scotland, 6.9%
– Wales, 6.1%
– East Midlands, 6.1%
– Northern Ireland, 6.8%
Here is the level of restaurant spending by nation and region, according to Lloyds Bank customer figures, with the percentage of total debit card spending that went towards meals out in the first two weeks of January:
– London, 9.6%
– North West, 7.6%
– South East, 7.6%
– North East, 7.6%
– West Midlands, 7.5%
– East of England, 7.2%
– Yorkshire and Humber, 7.1%
– South West, 7.1%
– Scotland, 7.1%
– Wales, 7.1%
– East Midlands, 6.9%
– Northern Ireland, 6.9%