Over 50% of Total Transactions Carried Out in UK in 2016 were by Cards

In its latest annual payments survey, the British Retail Consortium (BRC) revealed that cards payments now account for over 50% of payment transactions. While the prospect of living in a cashless society has been growing for years, the news marks the first time in history that cash was no longer the most popular method of payment in the UK. The shift has been driven largely by the introduction of contactless card technology.

Below is comment from Laurent Dhaeyer, managing director of Secure Trading, the online payments expert, arguing that as the role of cash in society continues to decline, the financial services industry needs to be ready to evolve with consumer habits.

“The fact that cash is no longer the preferred method of payment in the UK is testament to how payments cards, mobile payments and NFC technology are all contributing to a faster and more convenient checkout process. For banks and financial intuitions, it has become essential to facilitate a variety of payment methods to ensure their business customers remain competitive and provide consumers with the payment options they find most convenient to use.

“High-street banking provides a good example of how consumer habits are changing. It’s been a long time since banks employed a long line of cashiers in order to process customer cash, instead the experience has become increasingly digitised, with customers wanting to sort finances on the move. This has enabled banks to streamline operations and focus on delivering digital services both.

“The payment industry must ensure that front-end innovation is being supported by a back-end that enables it to work smoothly. Merchants will begin to grow tired of the inadequate ‘plumbing’ that hasn’t been updated for years, and will turn their backs on banks that don’t innovate for disruptive Fintech start-ups and challenger banks that are built upon modern, innovative foundations.”