Cash remains king for consumers - Money - News - Moneyfacts


Cash remains king for consumers

Cash remains king for consumers

Category: Money

Updated: 27/06/2011
First Published: 27/06/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Increasingly cautious consumers are becoming more reluctant to spend money they have not got, according to the British Retail Consortium.

Its annual payments survey for 2010, which measured over eight billion transactions in UK shops and online, suggests people are thinking harder about the ways they pay for the things they buy.

The figures show credit cards are increasingly being left at home, with customers turning to cash and debit cards instead in order to better manage their finances.

The proportion of transactions using credit cards fell by 12.9% last year, while the proportion involving debit cards rose by 15.8%.

Although cash was involved in a smaller proportion of transactions than a year earlier, it was used for a greater proportion of overall retail spending.

The average amount spent in each cash transaction increased by 13% to £12.93.

Overall, more than half (55%) of all transactions in 2010 were paid for with cash, just over a third (34%) involved debit cards, and only one in ten (10%) involved the use of a credit card.

Cash was also found to be the quickest way to pay, taking an average 27.2 seconds compared with an average 39.4 seconds for a card payment.

"Hard-pressed customers are switching to cash and debit cards for the reassurance that they can't spend what they haven't got," said British Retail Consortium director general Stephen Robertson.

"At the same time, use of credit cards has dropped sharply.

"Cash remains king - used for more than half of all retail payments."

Find the best credit card rates - Compare credit cards

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Would you spend more for a character property?

We all have our own ideas of what makes a dream home, and for many, character features are at the top of the list. But how much more would you be willing to pay for those kinds of additions – and could they even help you save money in the future?

A quarter of Brits have fallen victim to a scam

Think you know how to spot a scam? It may not be as easy as you’d think, with 25% of Brits admitting that they’ve been the victim of one in the past, and a further 73% are concerned about being scammed in the future.

Brits’ bad spending habits revealed

Many of us like to think that we’re good with money, yet there are often things that get in the way of regular saving and financial security. Solution Loans has taken a look, and has identified the bad spending habits that leave us in the red.