Britons Increasingly Favour Digital Spending over Cash Use
Cash use amongst consumers might be heading the way of the dinosaur, according to a new report by the British Retail Consortium (BRC).
According to the BRC's Payments Survey 2013, which covered 60% of total UK retail sales, cash use has plummeted to its lowest level ever, thanks to the increasing popularity of contactless payments and self-service tills. Furthermore, marketing initiatives to promote the use of these payment methods have substantially boosted debit card sales.
BRC's study revealed that debit cards are now the most popular consumer payment method in terms of value, accounting for 49.6% of sales. In contrast, cash use has fallen by 14% over the past five years and now accounts for just 27.6% of total sales.
Cash still remains the dominant method of payment however - it accounted for 52.6% of transactions last year, compared to 32.7% for debit cards and 9.3% for credit cards.
Director General of the BRC, Helen Dickinson, commented: "Cash use down 14% in the last five years is a milestone in the development of our digital economy. It shows that customers are embracing digital shopping whether online or on the High Street and retailers are adapting and evolving to meet the demand with excellent services."