Company News • 03.06.2014

Customers are using less cash than ever

Helen Dickinson, Director General of the British Retail Consortium....
Helen Dickinson, Director General of the British Retail Consortium.
Source: British Retail Consortium

Retailers make it easier and more convenient to shop and pay. New data reveals that a growing proportion of smaller payments previously made in cash are now being made in other ways.

The availability of contactless cards, handy express stores and self-service tills as well as online sales have contributed to the increased use of debit cards to 50 per cent of retail sales value in 2013, up by 11 per cent over the last five years. Over the same time period there has been a decline in the average debit card transaction value, and in the use of cash by 14 per cent.

Debit cards now account for 32 per cent of the number of transactions compared to 30 per cent last year. As everyday use of digital technology increases, customers are becoming accustomed to using the latest developments in ways to pay. However, cash remains the dominant method of payment, with 53 per cent of transactions still made in cash, although this has declined by 3 per cent over the last year and 10 per cent over the last 5 years.

The British Retail Consortium's (BRC) Payments Survey 2013 covers 60 per cent or £191 billion in retail sales in 2013. It tells a different story for credit cards as customers are spending the same amount in total but for fewer items, suggesting more considered purchasing. During 2013 the share in transaction volumes fell by 13 per cent (from 11 per cent to 9 per cent). The average transaction value was up by 12 per cent on last year. This reverses a decline in average transaction values over the previous three years.

The survey shows that banks are still levying unjustifiably high charges on retailers handing card payments. The average cost to a retailer to process a credit or charge card payment is now 40.9 pence, up 18.3 per cent in the last five years. Credit and charge cards account for only 9 per cent of transactions but almost half (48.7 per cent) of costs. At the same time, the cost to process a cash payment is now 1.3 pence and has decreased 38 per cent in the last five years. Cash accounts for 53 per cent of transactions but 9 per cent of costs. Debit cards costs have increased by 4 per cent in the last five years and cost 8.8 pence per transaction. They account for 32 per cent of transactions but 37 per cent of costs.

Helen Dickinson, Director General of the British Retail Consortium, said: "Customers are taking advantages 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. This is very much in line with the attention customers have paid to price and value during the recent economic uncertainty as they have sought to minimise payments from their budgets for everyday items.

"The recent pattern of spending on larger but fewer products on credit cards shows that customers are now feeling more confident than they did a year ago and reflects the wider consumer outlook of cautious growth.

"Cash use down 14 per cent in the last five years is a milestone in the development of our digital economy. It shows that customers are embracing digital shopping whether online or on the high street and retailers are adapting and evolving to meet the demand with excellent services. However, it is important to note that cash still remains dominant in the overall number of transactions.

"It is really disappointing that the average cost of accepting both credit and debit cards have increased over five years, while cash costs have gone down. Interchange fees cost the retail industry and its customers almost £1 billion in 2013. The much-welcomed European proposals to cap how much banks can charge retailers to process card payments are close to final approval, but in the meantime, we continue to work with the UK Government and Payment System regulator to implement caps on UK fees without further delay, as has happened in other European countries".

Source: British Retail Consortium

Supplier
Logo: British Retail Consortium

British Retail Consortium

21 Dartmouth Street, Westminster
SW1H 9BP London
UK

related articles:

popular articles:

Thumbnail-Photo: App creates personalised shopping experience...
26.08.2019   #mobile payment #app

App creates personalised shopping experience

The Swiss trading company Valora is opening its first cashless convenience store

The goods are chosen, scanned and paid for using the avec smartphone app. Mobile computer vision specialists Scandit’s scan engine is a key component of the customer-facing app. The future of shopping - whether online or offline - is ...

Thumbnail-Photo: Introducing a new, powerful mobile POS in Posiflex’s MT series...
25.06.2019   #epos systems #cashpoints

Introducing a new, powerful mobile POS in Posiflex’s MT series

MT-5310W from Posiflex combines the mobility of a tablet with the functionality of a fixed POS terminal. .

Today’s customers have higher expectations than ever when it comes to service. To meet and exceed customers’ ever-growing expectations, Posiflex is pleased to present MT-5310W, the latest addition to the popular MT series: a hybrid ...

Thumbnail-Photo: Frictionless checkout across all channels to build loyalty...
04.07.2019   #mobile payment #customer satisfaction

Frictionless checkout across all channels to build loyalty

H&M and Klarna elevate the shopping experience for US consumers

H&M and Klarna announced that they have expanded their current partnership agreement to also include the US market, in the development of an unrivalled payments and shopping experience across touchpoints. Together, H&M and Klarna are aiming ...

Thumbnail-Photo: APG announces the hiring of Mr. Paul Griffiths as its new president and...
09.08.2019   #cash management #cash drawers

APG announces the hiring of Mr. Paul Griffiths as its new president and CEO

Global cash management solution manufacturer welcomes its new president & CEO Paul Griffiths

APG Cash Drawer, a global manufacturer of cash management solutions announces the hiring of Mr. Paul Griffiths as its President and CEO. Most recently, Mr. Griffiths was the CEO of Birchwood Casey, a sporting goods company working with large ...

Thumbnail-Photo: Smart meters: Be proactive and reap the benefits...
12.08.2019   #energy optimization #electrical installation

Smart meters: Be proactive and reap the benefits

The Metering Point Operation Act calls for smart meter rollout

The black and analog electric meter box has become obsolete: The mandatory smart meter rollout will commence in a few months. What does the installation of digital, smart electric meters mean for retailers and chain stores? ...

Thumbnail-Photo: New year brings new regulations
13.09.2019   #data management #receipt printer

New year brings new regulations

What are the big changes for German point of sales systems come 2020?

Big changes are coming to Germany’s point of sale systems starting January 1, 2020. Two terms that are tossed around in this connection are "Belegausgabepflicht" (Receipt Provision Ordinance) and ...

Thumbnail-Photo: The Medial Customer Journey at the POS
29.08.2019   #online trading #pos marketing

The Medial Customer Journey at the POS

Permaplay offers different concepts for a powerful and sales-promoting POS communication

More and more people are buying more and more products in more and more places. The exciting question “Who will win: stationary retailing or online trading?” has been discussed for years. Permaplay Media Solutions Managing Director ...

Thumbnail-Photo: When the product becomes the POS
19.08.2019   #mobile payment #pos systems

When the product becomes the POS

“Mobile-first” or the future of the Point of Sale

The classic Point of Sale means physical sales areas including a terminal, cash systems and queues. But this traditional image is changing. Nowadays many customers in brick-and-mortar retail outlets expect the same experience as online and require ...

Thumbnail-Photo: Digital Signage Summit Europe - 30 % discount...
07.06.2019   #customer analysis #marketing

Digital Signage Summit Europe - 30 % discount

Many of the world’s foremost digital signage experts, thought leaders and leading technology and service suppliers will come together to present a unique mix of keynotes, conference channels, awards and exhibition showcase.

Now in its 14th year, DSS Europe is the leading European strategy event exploring the business and technology of Digital Signage and DooH - here is a 30% code for our readers – 415839The theme of this year’s conference is ‘Customer ...

Thumbnail-Photo: POS in the cloud: the networked checkout
13.09.2019   #epos software #digitization

POS in the cloud: the networked checkout

On the possibilities for a cloud-based point-of-sale-system

Everyone is talking about smart industry-specific cloud solutions. The cloud also offers the retail sector fresh possibilities for its day-to-day operations. So, it's no surprise that more and more companies are installing point-of-sale software ...

Supplier

Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
Superdata GmbH
Superdata GmbH
Ruhrstr. 90
22761 Hamburg
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
Permaplay Media Solutions GmbH
Permaplay Media Solutions GmbH
Aschmattstr. 8
76532 Baden-Baden