There has been an 80% increase in credit and debit card payments since 2016.

The latest report from the Banking and Payments Federation shows that digital banking payments jumped by more than two-thirds over the same period.

Meanwhile, the use of cheques has halved.

Payments. Image: Banking and Payments Federation

BPFI Chief Executive Brian Hayes told Newstalk that the digital banking revolution is now well underway.

“There is a fundamental change going on within the banking and payments area,” he said.

“It is a huge change for businesses as they go about their business and utilise the kind of digital payment options for those businesses.

“Consumers are voting with their fingertips. They are voting to use digital banking and payments in a much more comprehensive way than was ever the case in the past.

He said the move towards digital banking has undoubtedly been accelerated by COVID-19, with online and mobile banking up 67% in the past four years.

Alongside the huge increase in card payments, the BPFI has also recorded a 25% increase in direct debit payments.

Contactless payments. Image: Banking and Payments Federation

Meanwhile the increased limit on contactless card payments has led to a significant increase in contactless spending – even while coronavirus lockdown in in force.

The amount of money spent with a tap of the card was nearly 30% higher this January than last – even though there were far less shops open.

The number of contactless payments fell by 3.4% even as the amount spent per tap rose.

Contactless accounted for 45% of the card payments made in January, up 42% on the year before.