In 2018, card payments overtook cash transactions as the payment method of choice for consumers in Britain, with more than £94trillion making its way into the UK’s revenue stream via card and digital payments.
There’s no doubt that contactless cards have had a massive part to play in the rising popularity of card payments, accounting for more than 40% of all card transactions with total spend reaching £69 billion over the course of the year.
On the flip side, cash use has halved in the past ten years, with notes and coins now handed over in only three in ten transactions. That decline shows no sign of stopping, with cash usage forecast to halve again in the next decade.
The ease and convenience of card payments has made plastic the payment method of choice for UK consumers. And businesses that are investing in the technology are reaping the rewards.
It’s something we see every day at United Merchant Services, working with hundreds of businesses every year to set them up with card terminals for the first time or helping them make the switch to us, to save them money on their card processing fees.
The increasing popularity of card payments means that for business owners and managers, it’s never been more important to have a card terminal in your store. But with these impressive cashless figures and the obvious preference for consumers, the big question is are we on the way to becoming a cashless society?
Plastic fantastic
The younger generation is really leading the way when it comes to card payments, with over 77% of 25-34-year olds saying they use contactless payments through their cards or mobile phones on a regular basis.
However, perhaps surprisingly, not too far behind is the over 65’s, where 50% say they have used contactless technology when making a purchase. These statistics prove that it’s not just younger shoppers that opt for the speed and convenience of card payments, so for businesses in 2019, it’s absolutely vital to have a card terminal in place to ensure vital revenue isn’t missed.
We can’t know for certain when or if cash will become obsolete, so it is essential for your business to keep up with the contactless revolution.
In Europe, Sweden really leads in terms of the transition to a cashless society. The latest figures show that 99% of transactions are now made on card, highlighting how the use of coins and notes has almost become a thing of the past.
The drastic decline of cash use in Sweden over recent years has also seen fewer banks accepting cash deposits and some shops no longer accept cash at all. Whilst there is still some way to go before the UK adopts a similar stance, all trends and research suggests we’re heading in that direction.
An easier way to pay
Paying quickly and easily is essential in any fast-paced market, and the more it’s expected, the more unusual – and uncooperative – a business will seem for not accepting it in the eyes of its customers.
The nature of payments in the UK is changing and as the statistics show, consumers are now much more likely to choose card over cash when it comes to making a purchase.
For retail businesses, it’s crucial to adapt to meet the needs of customers and there’s an expectation now that there will be the option to pay on card – whether you’re a restaurant, hairdresser, garage or newsagent.
The trends are predicting an even greater move towards a cashless society, and the card terminals we provide help support SME businesses, allowing them to boost their sales and profit margins by capturing debit and credit card transactions.
We also offer a tailored approach in order to provide our customers with the best card processing solution for their business. As demand increases for instant, contactless and mobile payments, businesses needs to respond and our products help them do that.
United Merchant Services has been saving businesses money on their card processing fees for almost a decade. On average, businesses switching to United Merchant Services save £1,500 on card processing fees compared to their existing providers.
If you’d like to know more about United Merchant Services and the card processing services available, get in touch with the team today on 0800 756 5580 or email enquiries@unitedmerchantservices.co.uk
