The Payments Council is forecasting a bumper Christmas for retailers as it estimates that spending on cards, cash and cheques will reach £82.7bn in December, an increase of 1.2% from 2012 (£81.7bn).
Almost 12% of all consumer spend is expected to be online this year, with spending online increasing by 495% over the past 10 years.
Most spending, including online, will be done on debit cards, £34bn is predicted to be spent on debit cards up by 152% since 2003. Credit card spending during December will stay flat at around £14bn.
Cash spending will remain relatively flat whilst cheque use is predicted to fall by 11% compared to last year.
Research among consumers conducted by Santander implies a 12% year-on-year uplift in overall Christmas spending, with more consumption online than the high street.
One pound in every three spent will take place online, with 25% going to online retailers and nine percent to eBay or other Internet auction sites, forecasts Santander. This just exceeds the intended spend on the high street, which is expected to account for 33% of all Christmas shopping.
Supermarkets are set to be the biggest beneficiaries of festive cheer, with consumers planning to spend 29% of their money there.