Research from Paym has revealed that people are carrying less cash than they used to, with the national average standing at £22 per pocket. This is far below the £52 that people on average need to pay back their friends and families (assuming that the average Paym transaction amount reflects the average IOU, since this is the main purpose of the service).
Could this mean that cash no longer wears the crown? Craig Tillotson, executive chairman of Paym, certainly thinks so: "Cash is no longer king when it comes to paying back IOUs. As people carry smaller amounts of cash on them, chasing down money owed can quickly become a hassle. Paym allows you to send payments of up to £250 per day directly to friends and family's bank accounts using just their mobile number, making cumbersome IOU repayments a thing of the past."
The option to make hassle-free online payments to others, combined with the rise in contactless spending, could explain why people feel less need to keep cash on them. Being able to pay for things with the tap of a card can often be far more convenient, and means that having to root around in bags or pockets for loose change is becoming a thing of the past.
There are differences to be found across the UK, however, with Belfast residents having the most cash on hand at an average of £30, while people in Nottingham have the lightest pockets with just over £16 on them at any time. Paym will be taking a closer look at these regional differences in future research, but the decline in cash is clear – and the rise in Paym will make it even less necessary. Many people would welcome the alternative to constantly harassing their friends to take out cash to pay them back; just make sure your bank is signed up to Paym (and that you register with the service) or you won't be able to take advantage.
If you're already unhappy with your current account, due to low interest rates or high overdraft fees for example, have a look at our top current accounts and see if you could find a better deal. With nine out of 10 accounts currently offering Paym, you should have plenty of choice.
Find out more about Paym here
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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