Cashless payments take over cash
Cashless payments have overtaken notes and coins for the first time, according to new figures from industry body The Payments Council.
52% of all payments made by consumers, businesses and financial organisations were electronic transactions, including contactless and debit card payments. The remaining 48% was made up by cash payments, and this figure is expected to fall to just 34% by 2024. The Payments Council actually predicts that the majority of consumer transactions will be cashless in 2016, thanks in part to younger generations who are less reliant on cash than older consumers.
Dave Hobday, managing director of world payment services company Worldpay UK, said: “We know that 10% of Brits don’t carry any cash on them, so if you’re only taking cash payments, that’s one in 10 potential customers who will never consider shopping with you,” highlighting what this means for business like salons, some of which still only accept cash payments.
Ray Brash, managing director and chairman at prepaid services company PrePay Solutions, added: “It’s really no surprise that cashless payments are gaining in popularity when you consider the benefits they offer. The flexibility and security that these solutions provide make it easy to see why consumers are now consistently choosing cashless payments over cash. We expect the growth of this market to continue apace, as new payment methods and technology grow to maturity and become more integrated and accepted.”