UK online banking booms

Online banking is more popular than ever

The numbers of consumers using internet banking services has more than doubled in the past two years.

The survey from payment services group BACS concluded that the number of internet banking users had increased from 3.5 million to 7.8 million from 2000 to the end of last year.

Unsurprisingly, the number of people paying bills or transferring money over the internet or telephone has also risen dramatically.

During 2002, 7.2 million people paid bills or transferred funds in this way, 44% more than in 2001.

In total, 72 million payments were made online last year. People paying their credit cards accounted for more than half of these.

Fergus Rose, head of marketing at BACS, said: "Consumers have embraced the benefits of internet and telephone banking in the last year to make payments.

"Our research reveals users typically utilise the service as an informal source to check their statement and balance, but as confidence and trust grows, they start to make transactions, including bill payments and transactions to friends and family."