For the first time ever, new stats have shown that in 2017 more card payments were made in Britain compared to cash. Last year, 13.1 billion transactions were with old fashioned coins and notes, whereas 13.2 billion were made with debit cards. Cash is now the second most common payment method in Britain.
The survey, conducted by UK Finance, revealed that because contactless cards are so easy and convenient to use, people are choosing to pay with them over cash. 63% of people in the UK use contactless payments, making an average of 9 each month. That’s almost double 2016’s figures – five each month.
Younger generations love contactless, but over 65s aren’t too far behind
77% of people aged 25-34 made contactless payments in 2017, making them the earliest adopters when compared to other age groups. Those 65 and over are slightly more reluctant, but still tapping to pay in decent numbers – just over 50% paid with contactless in 2017.
As for the future of card payments, it’s predicted we’ll make 22 contactless payments each month by 2027. Wearable payment devices and Apple and Android Pay present even more options for shoppers too.
Are we becoming a cashless society?
For some transactions, cash remains the most convenient option – 2.2 million people use cash every day. However, more and more payment innovations mean cash could be facing a slow decline. In Sweden, the most ‘cashless’ society in the world, just 1% of payments in 2017 were made in cash, which is predicted to halve by 2020. Many of Stockholm’s major banks don’t even accept cash anymore, processing digital payments only.
60% of Brits expect us to become an entirely cashless society at some point in the future, but the majority agree it might not be for some time.
Card = convenience
Retailers, bars, restaurants and salons that don’t accept card and contactless payments could be missing out, no matter what their size. With more and more people carrying plastic instead of coins and notes, potential customers could be turned away by a prominent ‘Cash only’ sign.
Paying quickly and easily is an essential in any fast-paced market, and the more it’s expected, the more unusual – and uncooperative – a business will seem for not accepting it.
Merchant Cash Advance
At Capify, we offer a product called the Merchant Cash Advance which is an innovative way of raising money for your business. You are able to get up to 150% of your average monthly credit and debit card sales. We offer anywhere between £3,500 – £500,000.
Repayment is very simple and hassle-free, every time a customer pays for something using their credit or debit card, a very small amount will come to Capify. The amount you pay back each day therefore fluctuates, so on a slow day you will pay back less and on a busy day you will repay slightly more.
To find out how much business finance you qualify for, get a quote today.Get A Quote