Cash may no longer be “king” – Graph of the Week

The latest statistics from Finance UK show that last year saw the number of card payments exceed that of cash which proves that the long-established view that “cash is king” may no longer be valid. The trend was facilitated by the surge of contactless payments, which an increasing number of people adapt, hitting 13.2 billion transactions in 2017, compared to 13.1 billion for cash.

The study estimates that 3.4 million people declined to pay with cash at all in 2017 and that contactless payments will account for a third of all payments by 2027. People choose to use alternative payment methods because of the increased access to payment cards, evolving consumer behavior, as well as new technologies giving customers more choice.

Seeking the ease of use and flexibility of alternative payment methods, many have turned to the use of wearable and mobile payment devices. These represent more convenient means of managing personal finances, giving shoppers the freedom to make purchases effortlessly and match their personal lifestyle with a preferred payment method.

What is more, the rise in contactless payments and payment accessories create new exciting opportunities for brands too. With customers being able to purchase items at the touch of a card or a mobile phone, retailers are urged to create smoother shopping experiences accommodating the needs for speed simplicity and security.

The same counts for online businesses hosting e-commerce platforms which need to make sure that their infrastructure permits the use of modern payment methods, as well as a checkout process which requires minimum steps to complete. This should simultaneously be complemented by advanced security measures which protect the personal and payment information of users and is consistent with the latest security measures.

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Source: Finance UK