The popularity of cash and cheques continues to decline, according to figures from Halifax which show that nearly 85% of all current account transactions made by its customers are now electronic.
As contactless technology gains traction, online and mobile banking become ubiquitous and 'pay a contact' services such as Paym emerge, more traditional payment methods are falling by the wayside.
Debit card transactions now account for 56.7% of all Halifax current account transactions, up from 54.9% in 2013. Meanwhile, Faster Payments usage, while still low, is growing fast, up from 2.3% to 2.7%. In contrast, cash withdrawals now makes up just 16.6%, down from 17.9%, and cheques a measly 1.2%, down from 1.5%.
Cash withdrawals now account for just £18.33 of every £100 spent, a £1.82 decline since 2013. Although cheques account for one transaction in every 100, their relatively high value still accounts for £8.14 in every £100 spent this way. Direct Debits account for a fifth of every £100 spent and the value of Faster Payments has increased significantly with share per £100 increasing by 16% from 2013, to £15.
Nick Young, head, current accounts, Halifax, says: "This trend away from cash is likely to go on as banks innovate and provide customers with more convenient ways to pay for their goods and we continue to see the rise of new, non-traditional entrants into the payments market. Consumers now have much more choice regarding payment methods and have adjusted their spending habits accordingly."