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Card Payments Set to Overtake Cash Sales
Listed under: News
Published: Wednesday, April 14, 2010
The number of consumers making their purchases via coins, notes and cheque is expected to fall dramatically over the next five years and expected to account for less than half of all transactions by 2015, according to a recent report from credit management company, ICM.
The findings, which have been backed up by research from the Payments Council revealing that 80% of all cash payments made at present are for less than £10, suggest that card transactions will become increasingly prevalent over the next few years, potentially overtaking other methods of payment entirely by 2018.
The Council predicts that debit card spending will increase from £65 billion to £490 billion over the next eight years, seeing the number of purchases made by cash fall from 73% in 1999, to just 45% in 2018. Methods of paying employees for their services are also expected to alter, with a mere one in 50 people receiving their wages in cash, compared to one in eight in 1999.
Commenting on the demise of more traditional payment methods, Mike Bowman of the Payments Council, says, “Although cash will not disappear in our lifetime, the continuing payments revolution will make it an ever smaller part of our spending. The noughties have been the decade of the debit card. Especially since chip and pin, which has speeded up transactions, and it has become socially acceptable to buy small items by card now too, for example in a sandwich shop or a pub.”
Have you noticed an increase in card payments? Email your thoughts to .(JavaScript must be enabled to view this email address)
The findings, which have been backed up by research from the Payments Council revealing that 80% of all cash payments made at present are for less than £10, suggest that card transactions will become increasingly prevalent over the next few years, potentially overtaking other methods of payment entirely by 2018.
The Council predicts that debit card spending will increase from £65 billion to £490 billion over the next eight years, seeing the number of purchases made by cash fall from 73% in 1999, to just 45% in 2018. Methods of paying employees for their services are also expected to alter, with a mere one in 50 people receiving their wages in cash, compared to one in eight in 1999.
Commenting on the demise of more traditional payment methods, Mike Bowman of the Payments Council, says, “Although cash will not disappear in our lifetime, the continuing payments revolution will make it an ever smaller part of our spending. The noughties have been the decade of the debit card. Especially since chip and pin, which has speeded up transactions, and it has become socially acceptable to buy small items by card now too, for example in a sandwich shop or a pub.”
Have you noticed an increase in card payments? Email your thoughts to .(JavaScript must be enabled to view this email address)
