Cashless payment methods have increased to account for 83.4 per cent of all current account transactions with cash and cheque payments continuing to decline at pace, according to a new report.
Cash withdrawals make up just 16.6 per cent of all Current Account transactions, a reduction of 8.3 per cent on last year, revealed the latest current account data from Halifax. Conversely, the proportion of transactions made by cheque nosedived 20 per cent in the period to account for only 1.2 per cent, down from 1.5 per cent.
While faster payments such as contactless still only make up a small proportion of the volume of transactions (2.7 per cent), they are seeing the fastest growth, accounting for £15 of every £100 spent.
Nick Young, head of Halifax Current Accounts said that the trend away from cash is likely to continue as banks innovate and provide customers with more convenient ways to pay for their goods.
"We continue to see the rise of new, non-traditional entrants into the payments market," he said. "Consumers now have much more choice regarding payment methods and have adjusted their spending habits accordingly. As the number of ways to pay on debit card continues to increase, we are likely to continue to see a corresponding decline in the use of cash.”
Alongside the shapr decline in cash and cheque transactions, the amount customers are spending via both of these methods through their current accounts is also in freefall.
Cash withdrawals now account for just £18.33 of the every £100 spent, a £1.82 decline since 2013. Although cheques account for around 1 transaction in every 100, their relatively high value still accounts for £8.14 in every £100 spent this way.
The data used in the report is based on Active Halifax personal current account customers during 2013 and 2014.