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Cash in second place as cards flourish

Cash in second place as cards flourish

Category: Banking
Author: Lieke Braadbaart
Date: 20/06/2018

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 It is now over 6 months old so the content may be out of date.

Results for 2017 show that Brits now officially love paying by card more than with cash, as consumers made 13.2 billion debit card payments compared to 13.1 billion cash payments according to UK Finance. This means that cash is in second place for the first time ever, with new technologies making it ever more convenient to pay using plastic.

Between contactless, smartphones and online shopping, there's clearly a shift occurring in how we pay for things and manage our money. Indeed, cash payments were down 15% year-on-year, as people feel less of a need to carry notes and coins around with them. In contrast, contactless payments, from both debit and credit cards, rose by 97% over the year to 5.6 billion.

Given the ability to pay for up to £30 of shopping with just the wave of a hand, it's easy to see why contactless is becoming so popular. While many will have already gotten a contactless card from their provider, with 63% of Brits now using contactless, if you're still having to type in your pin-code every time you buy a sandwich, you might want to take the opportunity to see if there's a better bank account out there for you and kill two birds with one stone.

Similarly, did you know a lot of credit cards come with contactless payments now? Of course, you'll want to be careful so you don't end up with a higher-than-expected credit card bill at the end of the month – after all, if you don't see what you're spending it's harder to stick to a budget.

But if you know you can and will pay off your debt every single month without fail, a cashback credit card with contactless could make your life a lot easier while offering something in return for your spending. And unlike with debit cards, your purchases would be protected.

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 Any products featured may be withdrawn by their provider or changed at any time.

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