20 August 2017
Find out more

Cash usage on the wane - Halifax

29 April 2014  |  5714 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  |  11029 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  |  7298 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  |  8458 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  |  9913 views  |  0 comments | 9 tweets | 14 linkedin
Payments in 2022: Cash out, mobile in

Payments in 2022: Cash out, mobile in

19 August 2013  |  16127 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  |  10379 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  |  9773 views  |  0 comments | 15 tweets | 9 linkedin
Europeans wary of dirty cash

Europeans wary of dirty cash

26 March 2013  |  5856 views  |  3 comments | 9 tweets | 5 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.abe-eba.euvisit www.dorsum.euvisit www.niceactimize.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
9440 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
8023 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
7566 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
7097 views 0 | 2 tweets | 1 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
6708 views comments | 14 tweets | 12 linkedin

Featured job

Find your next job