Debit and credit card transactions made up more than four in every five pounds spent in 2020, according to new data published by the British Retail Consortium (BRC).

The figure sat at 81% of payments made, having risen from 78% in 2019.

As a result of a digital shift during the pandemic, cash use now accounts for just 15% of total spending in retail, a figure down from 20% in 2019, though it still accounts for 30% of individual transactions.

The BRC suggested an “overwhelming” trend towards card payments in recent years has meant retailers incurred costs of more than £1bn just to accept these payments from customers in 2020. Debit cards, which accounted for over half of all transactions (54%) for the first time, have seen transaction fees rise by 22%, to 7.2p per transaction.

Amid a backdrop of mounting costs from the pandemic, Brexit, global supply chain disruption and rising commodity prices, the BRC warned that excessive card fees could add further cost pressures to retailers.

BRC payments policy adviser, Andrew Cregan, said: “The pandemic has accelerated the trend towards card payments, with more than four in every five pounds spent in retail now made with credit or debit cards.

“Basket sizes also rose, as customers made bigger, but fewer purchases. While cash use has declined in importance, it remains vital for many people who do not have access to other payment methods.

“Despite the general movement to card payments, retailers are being punished through the soaring cost of accepting such payments. Parliament needs to urgently intervene in this anti-competitive behaviour by regulating card scheme fees and abolishing interchange fees, both of which ultimately hurt consumers. Card firms are abusing their dominant market position, and this must come to an end.”

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