19 February 2018
visit www.ebaday.com

Uneasy sits the crown as cash use continues decline

11 August 2017  |  12663 views  |  1 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: (1)

Melvin Haskins
Melvin Haskins - Haston International Limited - | 12 November, 2017, 23:27

Please read the ancient book by Daryl Huff - 'How to lie with statistics'. Read the chapter - The Semi-attached statistic.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
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  |  10061 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  |  13784 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  |  10536 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  |  11543 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  |  7735 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  |  7947 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  |  5975 views  |  6 comments | 7 tweets | 13 linkedin
Britain to go cashless in 2043?

Britain to go cashless in 2043?

14 March 2017  |  15342 views  |  4 comments | 21 tweets | 27 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit https://www.capgemini.comvisit www.nextgenbanking.co.ukvisit www.swift.com/your-needs/instant-payments

Top topics

Most viewed Most shared
Saudi central bank provides sandbox for banks to try out Ripple techSaudi central bank provides sandbox for ba...
11462 views comments | 16 tweets | 12 linkedin
ABN Amro moves escrow accounts to the blockchainABN Amro moves escrow accounts to the bloc...
9024 views comments | 15 tweets | 13 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
8885 views 10 comments | 22 tweets | 26 linkedin
Aussie real-time payments platform goes liveAussie real-time payments platform goes li...
8795 views comments | 15 tweets | 43 linkedin
Coinbase and Visa at loggerheads over erroneous charges on customer crypto accountsCoinbase and Visa at loggerheads over erro...
7394 views comments | 12 tweets | 10 linkedin

Featured job

Six-Figure-Base, Double OTE, Benefits Package
London, UK

Find your next job