Over a fifth of all shopping on cards is done online as Britons turn to phones and tablets to order takeaways, clothes and trips out
More than a fifth of all spending on credit and debit cards is likely to be done online this year as the internet revolution continues – with the fastest growth coming from the take-away food sector.
Online spending overall is up by a quarter in just four years, according to Barclaycard, with the rise thought to be due to the rapid spread of smartphones and tablets.
The latest data shows that 22 per cent of all card spending was done online last year and at current growth rates is set to come close to 25 per cent this year.
Revolution: Easier internet access means more spending on fashion, takeaways and outings
The continuing rise in online spending will fuel the debate over business rates. Traditional retailers have long been complaining that the cost of rates on their premises puts them at a disadvantage against online shops.
The Chancellor this week announced a comprehensive review of business rates with many speculating that this may lead to some kind of tariff on internet sellers to relieve the burden on traditional outlets.
Online spending on clothing last year rose by 41 per cent for men and 32 per cent for women.
But the real star sector was restaurants, which shot up by 47 per cent due to spending on takeaway food.
Chris Wood, managing director at Barclaycard, said: ‘Takeaway restaurants are thriving thanks to consumers who are hungry for home delivery with the convenience of ordering online.
‘Although these orders account for a small portion of total restaurant spending, we’ve seen phenomenal growth from nimble businesses that make the process easier than ever before.’
Restaurants' online spending shot up by 47 per cent due to spending on takeaway food
The rise in smartphone use and food delivery specialists such as Just Eat, which offers a single website from which to buy a range of takeaways, meant that the industry has transformed from the late-night queues and cash-only scenario of yesteryear to a multi-billion pound high-tech industry. Just Eat reported a record £1billion in sales last year.
Peter Backman, managing director of food analysts Horizons, said: ‘The figures reflect both the overall growth in the home delivery market, as people are increasingly choosing to order in rather than buy food to cook from their local supermarket.
‘There is also the fact that where previously people might have phoned up their local takeaway and paid in cash, nowadays people are far more likely to either order direct online or go via one of the delivery sites.
‘Friends eating at home together can order their own food and pay for their own meals rather than having to decide what to have together, so one can eat Thai while the other has a pizza.’
Amusing: In the first few months of 2015 there was also a sharp rise in online spending on tourist attractions
In the first few months of 2015 there was also a sharp rise in online spending on tourist attractions and amusement parks – up by about a third on the same period in 2014.
Jackie Grech, legal and policy director for the British Hospitality Association, said: ‘People are now very comfortable booking and buying tickets on their smartphones and tablets and the hospitality and tourism industry is becoming skilled at creating attractive offers, easy ticketing options and the use of new mobile innovations such as quick-queuing technology.’
The credit card company data is based partly on use by its own customers but because Barclaycard also provides the payments systems used by thousands of businesses, its data covers about half of all card spending carried out in the UK, making it the most comprehensive view of shoppers’ habits available.
Barclaycard also found that while total spending was rising rapidly, the number of online sales was increasing even faster.
This shows that consumers are shopping more frequently for smaller amounts and may be more willing to buy low-cost items online, lured by free and fast delivery.
Unsurprisingly the younger generation is leading the way with internet spending, which among the under-25s rose by 27 per cent last year.
The rate drops off sharply with older consumers. The over-65s are seeing barely any growth in online spending in real terms, up just 3.3 per cent last year.
Wood added: ‘Online consumer spending continues to boom as shoppers embrace the value and convenience it brings. Across the board, businesses have realised the potential and are using increasingly sophisticated tools to bring the best of the in-store experience online.’
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