News & Views - Savantor
You are here:
/
/
/

Cash v Cards

Friday, 15 June 2012
Credit card lending contracted in April, representing the fourth time it has contracted in the past six months and suggesting that consumer confidence remains low.   Repayments exceeded new borrowing by £118m, marking the biggest monthly contraction since August 2006, according to the latest figures from the Bank of England.  With the UK still in recession and many people concerned about job security, the figures suggest that people are focusing on reducing their debts, and putting tighter controls on their spending.  This trend seems to be given greater credence by latest figures issued by the British Retail Consortium which, based on over 9.4 billion transactions in shops, shows cash was used 5.7% more in 2011 than the previous year, accounting for 58% of all payments.  In contrast, the percentage of transactions carried out by card fell by 10.53%.  In 2011, debit cards made up 29.1% and credit and charge cards 11%.
Perhaps taking heed of this, two recent developments are making it easier to get cash out of an ATM.  Customers who use the Royal Bank of Scotland (RBS) or NatWest mobile banking app can now request cash, up to £100, via their smartphone.  They are given a six-digit code to enter into an ATM to release the cash.  Access to the app requires a password, and the withdrawal code will be hidden until the user taps the screen.  NCR is also looking for partners for their card-less and PIN-less ATM withdrawal system that sees customers initiate transactions through their mobile phones and then scan 2D barcodes on the machines' screens.
Banks are also trying to increase the appeal of contactless by raising the spend limit to £20.  Over 17.7 billion of all consumer cash payments are for amounts under £20 – with a majority of these being for purchasing groceries, followed by payments made for dining out.  Maybe the recession and desire for greater personal control on spending will provide the final kick to get contactless really on the move in the UK.
Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

EMV Migration Planning

"It was a strategic imperative for the bank to be EMV compliant for our payment cards and the experience that Savantor brought to the company has proved to be invaluable."

Eddie Sweeney, Chief Technology Officer - AIB Bank - Ireland

Card Migration

"I was impressed by the speed with which the Savantor team were able to start delivering and as a team they have made a significant contribution to the success of the Programme."

Bjorn Niels, Programme Director - ABN AMRO Bank - The Netherland

Credit Risk Review for New Product Launch

"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."

Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland

Payments Platform Strategy and Sourcing

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with our team and actively contribute. Their experts quickly forged strong working relationships and delivered to our brief. We enjoyed working with them to develop our future platform strategy."

Evert R Fekkes, SVP - Payment & Savings Services - Rabobank Nederland

Market Insights

"Savantor did a good job in helping us understand the dynamics of a key growth area for Trionis. Savantor's ability to listen and their degree of commitment have always impressed me. They have been of great help in providing us important market insights and I would not hesitate to work with them again in future."

Ernst Verbeek, Managing Director - Trionis - Belgium

New Payments Initiative

"In moving our new initiative into reality, we required specialist payments knowledge and forward thinking in the retail sector. Savantor supplied this and provided very effective guidance throughout. We enjoyed working with them."

Sophie High, Head of Innovation Delivery - Cancer Research UK

Interchange Review

"Savantor did a superb job in confirming what we believed was an area of weakness. The detail we now have will enable us to agree internally what we need to do to improve structure, control and income. Nationwide management were very impressed with the quality of the Savantor team."

Adam Slater, Senior Manager - Banking - Nationwide Building Society - UK

Commercial Card Migration

"Execution at its best. We're delighted that this project has been truly outstanding and received an award from 'The Banker'. Savantor provided crucial expertise that helped us keep all our promises in terms of delivery. The scheduling, planning and control regime throughout was excellent."

Chris Mason, Director - Commercial Cards EMEA - Citi - UK

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.