Is it curtains for cash?
By myfinances.co.uk staff
For the first time, cash is expected to be used in less than half of all transactions within five years as consumers turn to plastic cards, according to a new report.
The Payments Council said that value of cash being used has not been keeping pace with increases in overall wealth and spending - over the past ten years, cash transactions have grown by seven per cent while consumer expenditure has doubled.
It added that if people only used notes and coins to pay for goods and services, Britons would need to carry an extra £102 billion - or £2,050 each - a year in their wallets compared with a decade ago to cover their additional outlay.
The dwindling use of cash is highlighted in Britain's pubs, the council said.
In 1999, 90% of pints were bought with hard currency. Now chip and pin spending accounts for over half of pub transactions, while cash is used for just 40 per cent of purchases.
"Although cash won't disappear in our lifetime, the continuing payments revolution will make it an ever smaller part of our spending," said the Payment Council's Mike Bowman.
In related news, the latest Consumer Confidence Index from Nationwide has shown that confidence about spending among Britons rose in March after three straight months of decline.
- Tags:
- chip and pin ,
- credit cards ,
- household ,
- news ,
- spending habits
Comments
Newsletter sign up