Cash transactions slump to lowest levels on record as plastic and digital payments surge
Cash transactions in the UK have slumped to their lowest levels ever, according to a new survey by the British Retail Consortium, driven by the continued rise of digital, plastic and contactless payments.
According to the retail body cash accounted for just 53 per cent of all transactions in 2013, a three per cent decline over the year and 10 per cent fall over the last five years. This slump dovetails with a rise in debit card use which hit 32 per cent (up from 30 per cent in 2012).
In terms of value however debit cards have already hit the 50 per cent mark, an 11 per cent rise over the past five years.
Helen Dickinson, director general of the BRC, said: “Customers are taking advantage of new ways to shop and pay. The availability of contactless cards, handy express stores and self-service tills as well as online sales has increased the use of debit cards for smaller payments in place of cash.
"Cash use down 14% in the last five years is a milestone in the development of our digital economy".
The BRC payments survey covered 60 per cent of the £191bn in retail sales registered in 2013.