A new report from the Payments Council shows a decline in the use of cash, as it is replaced with payments via cards.
The Way We Pay 2010 insight shows that six in ten transactions still involve cash, but almost 80 per cent of these are less than £10. Most substantial payments are now made using a credit card. And according to the study, cash transactions are expected to represent less than half the total in five years time - the first time this will ever have happened.
Commenting on the findings, APA Technology Director, Colin Minto, suggested that cash use is, "Declining as the generation that was used to cash gets older and the new technology generation takes over. Electronic payment, principally driven by the growth in ecommerce, has become the method of choice for Internet users and reservations about a lack of security have diminished as volumes increase,” he said.
"We still have to be aware that a small percentage of the population have neither credit cards nor bank accounts but the use of cash does seem to be rapidly disappearing. Last year, it was announced that the cheque will be phased out as a payment method by 2018.”
APA
The Way We Pay 2010 insight shows that six in ten transactions still involve cash, but almost 80 per cent of these are less than £10. Most substantial payments are now made using a credit card. And according to the study, cash transactions are expected to represent less than half the total in five years time - the first time this will ever have happened.
Commenting on the findings, APA Technology Director, Colin Minto, suggested that cash use is, "Declining as the generation that was used to cash gets older and the new technology generation takes over. Electronic payment, principally driven by the growth in ecommerce, has become the method of choice for Internet users and reservations about a lack of security have diminished as volumes increase,” he said.
"We still have to be aware that a small percentage of the population have neither credit cards nor bank accounts but the use of cash does seem to be rapidly disappearing. Last year, it was announced that the cheque will be phased out as a payment method by 2018.”
APA
4 comments:
My employer the Institute of Credit Management work closely with the Payments Council and payment methods are certainly changing - from a personal point of view I run a charity account for a youth group and the phasing out of cheques will create a few challenges. Gareth I think you'd be disappointed if I didn't make the following statement: Cashflow is still King!
Hi Tracy,
Good point made. So, what will happen post 2018 when cheques will have been bounced from the money markets? It will definitely happen, if for no other reason than the cost of producing cash is so high. Would you mind asking the Payment Council and getting back to us?
The historical statement was 'Cash is King'; which it clearly no longer is. Casflow, as you correctly observe, or the difference between all forms of income less expenses will always be the 'deity of business'.
Tracy,
I thought I was bad enough blogging at 6.30 but I see yours was timed at 4.58!!!!
Gareth, I haven't lost the plot - my daughter was sleep walking in the early hours and I couldn't get back to sleep - thank heavens for the APA!
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