Are contactless cards replacing cash?
With the ever-increasing advances in payment technology, studies suggest that the use of contactless cards are rapidly replacing cash payments at UK checkouts.
Since the introduction of credit and debit cards, paying for an item at the checkout with cash has been in decline. Completing a sale with a credit or debit card is fast, easy and provides the customer with added purchase security. When first implemented, being given the choice to pay by card meant that the customer need not search their pockets for the right change. No coin or note counting resulted in one less thing to do at the checkout. Paying by card is a speedy process which compliments the fast-paced atmosphere of our present-day shopping practice.
Contactless cards and the latest payment methods such as Apple Pay and Samsung Pay have caused cash payments to plummet in recent years. Figures suggest that the number of cash payments made within the UK in 2014 fell to 48%. This was the first time that cash payments were ever exceeded by non-cash methods. It was in 2014 that a record value of £573 billion was spent on credit or debit cards which only supports the rising trend in this contemporary payment technique.
The growth of online shopping has been rapid in recent years and has therefore become a significant factor as to why there has been such a decrease in cash payments. Surveys suggest that 95% of people within the UK buy goods via internet retailers hence all purchases completed via this channel will be made primarily by credit/debit cards or by alternative payment methods such as PayPal. Source: Payments Council.
Fewer customers are carrying cash on their person therefore store owners are turning to card payment technology to save them from losing a sale. By accepting card payments the store owner will be able to offer their customer base with choice should they not have adequate funds on their person. It will also allow the owner to appear modern and keep up to date with the growing payment trends. With the increasing popularity in mobile wallets and contactless technology, there has never been a more vital time for a business to begin to accept card payments if they don’t already do so.
Chip & PIN Solutions are the UK’s leading provider in card machines and processing services. We can provide your business with a powerful pre-configured contactless terminal which will ensure that you never lose a sale again due to lack of customer cash. Our UK-based customer care team are there to answer any questions you may have. Click Here to view our contactless card terminals or call us FREE on 0800 881 8104 for more information.
October 12, 2015