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By Julian Goldsmith, 1 June 2007 14:41

NEWS

The debit card is 20 years old this weekend. With the launch of the Barclays Connect debit card on 3 June 1987, the high street banking sector changed its relationship with customers by giving them instant access to their money - another small step towards the long-touted cashless society.

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Nine months after the official launch of the card, the bank had issued one million cards. And 20 years later, around 68 million debit cards are in circulation in the UK. According to figures from industry group Apacs, 143 purchases are made with them every second, accounting for 6.8 billion transactions per year.

The growth in popularity of debit cards has outstripped that of the credit card, with 85 per cent of adults possessing a debit card, against 66 per cent who have a credit or charge card.

Barclays head of debit cards, Brian Cunnington, said: "The massive change when debit cards were introduced was that people were able to leave their chequebooks at home. It gave people the convenience to access their current accounts anywhere in the world. It was a massive convenience for the retailer as well."

He said: "Without payments moving to an electronic platform, internet retailing could not have taken off. The ability to make a payment accurately without having to send off a cheque has created this online channel for retailers."

Cunnington said the recent introduction of chip and PIN payments was another big change for debit card transactions.

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The next stage in the debit card's development is the introduction of prepaid cards and contactless payments - further reducing the need for carrying cash.

Cunnington said: "It's often easier to pay with a card than have to count out the right amount of change. Low value card payments will be the next big thing. Customers will see the rollout of contactless payments from the beginning of next year."

Whatever the future holds, the debit card is firmly established as the principle way of making payments, both on and offline. Cunnington added: "The debit card is right at the heart of the current account banking relationship."