With card transactions now overtaking cash purchases, are we seeing the decline of cash altogether?
Last year, there were 10.3 billion debit, credit and charge card transactions according to figures from the British Retail Consortium (BRC), which represents a 5% increase on the figures in 2015. This is the first time that cards have exceeded 50% of all retail payment methods, as they accounted for 54%. The introduction of contactless payment in the UK could be one of the reason why more people are using their cards to pay for over-the-counter goods and services.
The Rise of Contactless Payment
Debit cards alone accounted for 8.1 billion retail transactions, which translates to 42.6% of all purchases, exceeding cash transactions for the first time ever. It was also found that the average transaction amount on cards had fallen from £30.53 (in 2013) to £25.40. This lower transaction amount is an indication that contactless payments are having an influence on people’s card spending habits, as the maximum you can spend in one contactless transaction is £30.