18 August 2017
visit www.avoka.com

Uneasy sits the crown as cash use continues decline

11 August 2017  |  8128 views  |  0 cash

The numbers of people using cash to pay for everyday purchases in the UK declined by 11% over the past year as growth in contactless card use accelerated.

Consumers and businesses made 15.4 billion cash payments in 2016 - down from 17.2 billion in 2015, according to figures released by UK Finance. However despite the decline, cash was still used 25% more often than the second most frequently-used method; debit cards (11.6 billion).

During 2016, cash represented almost half (44%) of all payments made by consumers - the second year in a row where consumers used cash for fewer than 50% of all payments. During the same period, cash payments reached £240 billion, accounting for 15% of the total value of consumer spending, a decline of five percent compared to the previous year.

More than one in four (26%) consumer cash payments were for a value of £1 or less, and more than three in five (61%) were for a value of £5 or less.

The trend downwards for notes and coins contrasts with monthly figures released earlier this week by UK Finance displaying 143% growth in contactless payments in June, with consumers continuing to use their cards for lower value purchases.

Over the next decade the number of cash payments is forecast to crash by 43% to 8.7 billion with the total value predicted to fall by 23% to £185 billion in 2026.

Adrian Buckle, chief economist at UK Finance, says: “It is clear that over the past few years we have witnessed a significant shift away from cash use in this country with contactless cards undoubtedly causing a decrease in the use of notes and coins. However we don’t believe that the UK is on the verge of becoming cashless, as some reports have claimed. People will always want to choose the payment methods that best suit them and, for the foreseeable future, in lots of cases that will continue to be cash.”

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

Contactless sheds growing pains as tenth anniversary looms

Contactless sheds growing pains as tenth anniversary looms

01 August 2017  |  7363 views  |  1 comments | 12 tweets | 15 linkedin
Visa offers small firms free $10k upgrade...with a cashless catch

Visa offers small firms free $10k upgrade...with a cashless catch

13 July 2017  |  12858 views  |  2 comments | 16 tweets | 19 linkedin
Online and contactless drive surge in UK card spending

Online and contactless drive surge in UK card spending

19 June 2017  |  8627 views  |  0 comments | 19 tweets | 21 linkedin
Debit cards set to overtake cash in the UK three years ahead of schedule

Debit cards set to overtake cash in the UK three years ahead of schedule

25 May 2017  |  10503 views  |  3 comments | 28 tweets | 30 linkedin
ATMIA hits out at 'anti-cash' financial exclusion lobby

ATMIA hits out at 'anti-cash' financial exclusion lobby

27 April 2017  |  6971 views  |  2 comments | 10 tweets | 10 linkedin
Cash in retreat, but not dead yet - ING

Cash in retreat, but not dead yet - ING

26 April 2017  |  7103 views  |  4 comments | 13 tweets | 18 linkedin
The pound will not be round, or maybe around, for much longer

The pound will not be round, or maybe around, for much longer

28 March 2017  |  5554 views  |  6 comments | 7 tweets | 13 linkedin
Britain to go cashless in 2043?

Britain to go cashless in 2043?

14 March 2017  |  14217 views  |  4 comments | 21 tweets | 27 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.dorsum.eudownload the paper now

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
7591 views comments | 22 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7280 views comments | 19 tweets | 23 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
6012 views 1 | 5 tweets | 3 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
5953 views comments | 10 tweets | 7 linkedin
Apple sidelined as Beijing transit system launches payments appApple sidelined as Beijing transit system...
5837 views comments | 11 tweets | 9 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job