Consumers are now spending more on credit cards than cash

Oct 2, 2019
Author: Pete Wilmer
Pete leads the Corporate Finance offering at Hawsons, Pete specialises in advising business acquisitions and disposals, raising finance, business valuations and employee ownership trusts (EOT).
credit cards
Debit card is currently the most popular way of paying but credit cards are now the second most popular having overtaken cash for the first time ever (data according to British Retail Consortium). However, in terms of frequency, cash is still used more than credit card but the average payment using cash is worth £20 less than credit card.

BRC’s policy adviser Andrew Cregan, has said that online shopping and falling cash use are the main factors in the shift. He thinks that if we move into a cashless world it could leave many people stranded because without cash it would be more difficult to leave tips or give to the homeless.

People who are more vulnerable with physical or mental health conditions, who find it difficult to operate digital devices to access services could also be severely affected.

Mr Cregan has said around a third of all costs on card is a scheme fee by card companies like Visa and Mastercard, which has been rising quickly. “Without action [from government], we will see businesses put under further pressure and it will be consumers who are forced to pay the price,” he said.

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Pete Wilmer

Pete Wilmer

Senior Partner & Head of Corporate Finance, Sheffield
0114 266 7141

Paul Wormald

Paul Wormald

Partner, Doncaster

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Richard Burkimsher

Partner, Northampton