Cash Payments Continue to Decline among UK Consumers
Monday, 8 June 2015
Cash withdrawals from UK current accounts now account for just £18.33 out of every £100 spent by consumers, according to new analysis released by Halifax.
The British bank looked into the extent at which it’s personal account customers were embracing and actively utilising alternative, digital payments, as well as more traditional, non-cash payment methods such as debit cards.
Over £15 in every £100 is being spent through what the bank call ‘faster payments’, which include newer, technology driven mobile payments and online banking – a substantial increase on £12.42 in 2013.
Cash on the other hand continues to decline, falling from the £20.15 of every £100 spent it accounted for in 2013.
Direct debits also saw an increase, making up around a fifth of all payments – or £20.84 of every £100 spent.
'The 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.’ said Nick Young, Head of Current Accounts at Halifax.
'Consumers now have much more choice regarding payment methods and have adjusted their spending habits accordingly.'
Another report released by Dutch bank ING, which surveyed some 15,000 Europeans on their spending habits, found that the use of cash for purchases is falling across the continent.
Half of consumers who were polled said that they used cash far less than they did 12 months ago.
The same polled also indicated that this trend looks set to continue, with 84 percent of respondents saying that they intend to use even less cash over the next year.