02 August 2015

Cash usage on the wane - Halifax

29 April 2014  |  4458 views  |  0 20 pound note

Paying for goods and services in cash is on the decline as consumers embrace the convenience of plastic and automated payments, according to new current account data from the UK's Halifax.

Halifax customer data shows how spending habits are evolving, with plastic and automated payments now the most popular method of payment by both volume and size of transactions.

Debit cards are now used in 56% of all transactions. For every £100 customers spend, over a quarter (£28.87) goes on debit cards, with a further quarter (£27.72) accounted for by automated payments, with direct debits alone taking £19.90 of every £100 spent.

However, cash usage continues to decline, both as a proportion of transactions - representing just 17% of activity (down 1.8% in the last year) and £17.99 of every £100 spent (down £3.03 in the last year).

The average cost of handling cash for UK small and medium businesses has reached more than £17.8bn a year, or £3,638.57 per retailer, according to new research by payment service provider Sage Pay. However, despite this, 80% of the 1124 businesses polled say they will only embrace new payment methods, such as contactless payments, payment apps or bitcoin, if customers request it.

Anthony Warrington, director, personal current accounts, Halifax, says: "Cash continues to decline as more and more people prefer the convenience of paying on plastic and setting up automated payments for regular purchases. As the number of outlets and applications for debit cards continues to increase we've seen a corresponding decline in the use of cash."

The launch today of the national Paym mobile-to-mobile cash transfer service, and the increasing use of contactless cards in shops and for public transport journeys in the Capital, is expected to further limit the use of hard cash transactions by Brits over the coming year.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

03 February, 2014
04 December, 2013
30 September, 2013
16 September, 2013
19 August, 2013
10 June, 2013
04 June, 2013
26 March, 2013

Related company news

 

Top topics

Most viewed Most shared
ING Bank introduces voice-activated mobile...
9836 views comments | 26 tweets | 30 linkedin
Will Uber be the Uber of banking?
7848 views comments | 40 tweets | 31 linkedin
Payments and capital markets sectors domin...
6514 views comments | 17 tweets | 18 linkedin
Bank branches key to fending off digital c...
6015 views 11 comments | 21 tweets | 29 linkedin
MasterCard to connect Europe to Samsung Pa...
5814 views comments | 20 tweets | 14 linkedin

Featured job

Circa £100K Basic OTE £200K+ NO CEILING
London based with substantial travel in the Benelux Region

Find your next job