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

Collections Transformation

"Savantor did an absolutely superb job for us on the Collections programme. The professionalism, hard work, courtesy and tenacity of their experts is a credit both to the individuals and to Savantor."

Peter O'Dea, Senior Manager - Collections Department - Permanent tsb bank - Ireland

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

Platform Selection

"Savantor's support in our platform selection process has enabled us to sustain our profitability and positioning for the future. Their advice and guidance was essential to our decision-making."

Robert Lambert, Head of Cards Strategy - Permanent tsb bank - Ireland

Acquirer Risk Assessment

"The expertise provided by Savantor has greatly helped us evaluate our risk position and to take the right steps in managing our future risks. Strong, disciplined planning and an ongoing willingness to work closely with our staff played an enormous part in making this a very successful well-delivered project which will greatly help us in achieving our business goals."

Mark Healy, Chief Risk Officer - NEOVIA Financial - 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

Acquirer Specialist Support

"OP-Pohjola Group has used Savantors help in numerous different specialist projects differing from risk assessment to management tool creation to transaction analysis. We have been very satisfied by the quality of the service provided by Savantor's experts."

Kai Lindstrom, Head of Acquiring - OP-Services Ltd - Finland

Complex Multi-Country Migration

"This complex migration, undertaken simultaneously in Spain and Portugal, has been a complete success. Savantor has provided us with excellent support for over 3 years, both in the original business transformation programme and now this double migration. We value their open and honest approach to business, and of course the expertise that they bring."

Ricardo Gomez, Director, Operations & Technology - WiZink Bank – Spain & Portugal

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

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.