Cash is still king, despite rise in alternatives

19 April 2016

contactless-payment We keep being told of the rise of contactless payments and the like, but if you ignore all the hype, you'll know that cold hard cash is still ruling the roost. You know where you are with a bunch of coins in your hand, don't you?

A report from the Co-operative says that 65% of their shoppers still use cash, so the 'death' of money is a bit exaggerated.

That hasn't stopped people making prediction though, with a number of reports suggesting that mobile payments are going to overtake cards and cash by 2025. That's if we haven't been given yet another alternative by that time.

Contactless payments have indeed tripled in the last year, racking up 11 million transactions. However, if you're buying anything over £30, you'll still need cash or your chip-and-pin on the go. In fact, according to Co-operative's findings, people don't really want to pay with contactless once they approach a tenner. The average spend with contactless payments is £8.66 - once it goes above £10, people prefer to use chip-and-pin.

Cheryl Marshall, retail chief information officer at The Co-op, said: "We've seen incredible growth in contactless and it is the payment medium of tomorrow, although mobiles are ringing the changes."

"The new technology is perfect for convenience stores as shoppers buy fewer items and speed is important to them. Cash is still king as people enjoy carrying money, however we predict that by 2025 mobile payments will overtake cards and cash."

A spokesperson from the Royal Mint isn't having it, and said: "The demise of cash has been predicted for a long time but it remains the currency option the general public turns to for confidence, convenience and security. Cash is still the most prominent payment method for UK consumers and global demand for coins is as strong as ever."

TOPICS:   Banking   Investments   Economy

1 comment

  • Bonobo
    People trust the Co-op about anything?

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