News & Views - Savantor

Cash, Cards or Contactless

Tuesday, 30 April 2013

Surveys by Co Compare seem to suggest that the move away from cash may still be some way off. One in four consumers say they find the idea of contactless payments 'scary', while over a half say they would be saddened by a move to a cashless society. Of the 2000 UK adults sampled by GoCompare, 6% have so far initiated a contactless payment with a credit card and 3% have made such a transaction using their mobile phone. The pollsters found more adventurous behaviour online, where non-bank alternatives such as PayPal fare much better, with 86% holding a PayPal account and 54% describing themselves as regular users.

The research also looked at how people expect to pay for things in ten years time. While cash topped the list of payment methods (60%), closely followed by debit cards (52%), only two fifths of people thought that they would be using contactless card payment systems in 2023. By comparison 36% expected to still be using traditional credit cards by then. Just over a quarter of those surveyed expect to be paying for items via their mobile phone in 2023 while 19% think they will be using a type of biometric payment system.

The research also revealed that UK consumers are still turning to credit and debit cards as their preferred method of payment, with more than half putting the majority of purchases on plastic. Debit and credit cards dominate purchases valued at between £50.01 and £100, with just 13% of the consumers surveyed making purchases with cash at this level. A similar picture was revealed for purchases valued between £30.01 and £50, with the breakdown for payment methods as follows: debit card (54%), credit card (23%) and cash (21%).

 

For goods valued between £20.01 and £30 the number of consumers paying for items with cash (28%) surpassed those putting purchases on credit cards (20%), while the majority of consumers put purchases at this level on debit cards (51%). Further figures from the research reveals that cash remains the main method of payment for goods valued under £5, with more than third of consumers saying that they endeavour to make their purchases with cash wherever possible. Nearly half of consumers questioned also said that they didn’t like being without cash, with this figure standing at 57% for consumers aged 55 and over. However, for items valued at between £5 and £20 more than half of consumers argued that they would make their purchases with cash. A third said they would use their debit card, while 13% would make purchases at this level by credit card.

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