23 March 2017
visit nextgenbanking.co.uk

Cash usage on the wane - Halifax

29 April 2014  |  5457 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)

Finextra news in your inbox

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

Related stories

London buses to scrap cash fares

London buses to scrap cash fares

03 February 2014  |  10701 views  |  4 comments | 11 tweets | 19 linkedin
Whither the cashless society? UK ATM withdrawals to top £11 billion in December

Whither the cashless society? UK ATM withdrawals to top £11 billion in December

04 December 2013  |  6970 views  |  3 comments | 11 tweets | 14 linkedin
Increasing demand for cash boosts global ATM market

Increasing demand for cash boosts global ATM market

30 September 2013  |  8236 views  |  1 comments | 12 tweets | 13 linkedin
Global non-cash payments soar to 333 billion in 2012

Global non-cash payments soar to 333 billion in 2012

16 September 2013  |  9746 views  |  0 comments | 9 tweets | 14 linkedin
Payments in 2022: Cash out, mobile in

Payments in 2022: Cash out, mobile in

19 August 2013  |  15788 views  |  7 comments | 29 tweets | 17 linkedin
Cash use in the UK on the rise

Cash use in the UK on the rise

10 June 2013  |  10157 views  |  1 comments | 15 tweets | 6 linkedin
Show me the money: Cash usage forecast to continue growing for another decade

Show me the money: Cash usage forecast to continue growing for another decade

04 June 2013  |  9361 views  |  0 comments | 15 tweets | 9 linkedin
Europeans wary of dirty cash

Europeans wary of dirty cash

26 March 2013  |  5692 views  |  3 comments | 9 tweets | 5 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit abe-eba.euVisit capgemini.comParticipate in the survey

Top topics

Most viewed Most shared
Bank of England sets up fintech Community; runs blockchain and AI trialsBank of England sets up fintech Community;...
16144 views comments | 33 tweets | 26 linkedin
hands typing furiouslyMachine Learning: Lessons for Banks From S...
10061 views 0 | 11 tweets | 8 linkedin
Samsung Galaxy S8 to use facial recognition for payments - BloombergSamsung Galaxy S8 to use facial recognitio...
8416 views comments | 35 tweets | 28 linkedin
satellite26 Japanese banks register for Exchange-ru...
7464 views comments | 2 tweets | 1 linkedin
Can banks really win in the payments business of the future? – new Finextra reportCan banks really win in the payments busin...
7402 views comments | 21 tweets | 36 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job