In terms of numbers of transactions, cash will remain much bigger than plastic for some time to come, it added. "Cash will always remain there for low-value payments."
Meanwhile, 2003 was the year that e-commerce "came of age" in the UK. More than 18 million people bought goods or services online, up 50% on 2002. Credit cards accounted for 69% of the 200m transactions, with debit cards mopping up most of the (remainder).
Last year was a landmark year for another reason - the first (reduction) in card fraud for eight years. (Fraud) losses on plastic cards fell by 5% to £402m as measures to (combat)crooks started to take effect.
A new (generation) of cards containing computer chips is being introduced, and by the end of this year most people making face-to-face purchases will have to type their four-digit (Pin number) into keypads at tills and will no longer have to sign (receipts).