Survey finds only one in three UK consumers carry cash
A new study has revealed that one in three UK consumers now carry less than £5 in cash and that more than one in five think that physical money will disappear over the next 20 years.
Research by online payment solution provider Skrill found that instead of paying for purchases using traditional notes and coins, UK consumers are now more likely to pay by credit or debit card or make payments over the internet. In addition, one in 20 claimed that they never carried cash with them and 13% said they would be happy to give up cash today.
Almost a third of those surveyed said they expected to use less cash over the next ten years and already used cash to pay for less than a third of their weekly purchases.
Around a third (30%) said they used their debit and credit cards to pay for everything, regardless of how small the purchase value, and 13% admitted to buying things they did not really need to take them up to a minimum transaction amount. In addition, 35% said they got annoyed if a shop only accepted cash.
The research also found that in the future, instead of paying for purchases using traditional notes and coins, people were increasingly more likely to make payments on the internet with 37% of UK spending already having moved online. A significant 82% of respondents said that they planned to shop online next year and 38% said that they will spend more online this year than last. One in ten (13%) would like to do all of their shopping online if possible.
Skrill discovered that 51% of of those surveyed thought that use of digital wallets or online cash transfers would increase over the next few years, while 42% said they would make more payments on their debit cards.
Siegfried Heimgaertner, Skrill CEO commented: "Times are changing with cash, and even credit and debit cards increasingly making way for online transfers, digital wallets and payments via mobile phones or apps. Consumers are finding it quicker and easier to click a button than fumble with their change. With only 3% of payments in Sweden still made in cash, the coming years are going to see radical changes in this area."
Despite moves to new payment channels, the survey discovered that consumers thought there were a number of downsides to not using cash. 19% of those surveyed admitted that using their credit or debit card made it harder to keep track of their spending, while another 21% said they were less likely to stick to a budget if they did not pay with cash.
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