By Jonathan Davies
Cashless payments are now used more often than notes and coins, according to the Payments Council.
The industry body said cashless payments like online transfers, card payments and cheques accounted for 52% of transactions made in 2014. Cash, on the another hand, fell to 48%.
And the Payments Council said that cash volumes are likely to drop 30% over the next 10 years. It is expected that debit cards, contactless and mobile payments are likely to become even more popular.
Despite the rise of digital payments, the Payments Council said cash remains most popular among shoppers and businesses. It said 18 billion cash payments were made in the UK in 2014, totaling £250 billion. Debit cards accounted for just 24% of transactions and direct debits 10%.
In pubs, clubs and newsagents, 80% of transactions were completed using cash.
Dave Hobday, MD of Worldpay UK, said: “We know that 10% of Brits don’t carry any cash on them, so if you’re only taking cash payments, that’s one in 10 potential customers who will never consider shopping with you.
“When all the recent talk is around technology making payments fast, secure and convenient, notes and coins increasingly seem like something our children will laugh about in the future.
“A recent study we conducted found 60% of 25-34 year olds would prefer never to carry cash. They want the freedom to buy what they want when they want it, regardless of whether that’s online or in a store. Cash puts barriers back up just when technology is punching a hole straight through them. Any retailer still clinging to the notion that cash will make a comeback is missing the biggest shift in the way we live our lives since the industrial revolution.”