New research reveals that Apple Pay and contactless payments have actually overtaken cash payments by a landslide as our favourite ways to pay in-store.
The study comes from digital payment solutions provider, takepayments and included a survey of over 1,000 UK consumers, revealing that:
Contactless is by far the most popular payment method in the UK. Mobile payments like Apple Pay came in 2nd and cash 3rd
Nearly one in three people admit to never carrying cash and more than half admitted to being deterred from shopping at a cash-only business
People stated that they stick to cash for security and budgeting purposes, while contactless users prefer the convenience
The age group most likely to prefer cash is those aged 55 and over. Nearly a quarter (22%) of Over 55s said that cash was their preferred payment method, compared with just 1 in 10 (10%) 18-24s
One in 15 (7%) admitted that they didn’t even remember their card pin
Interestingly, men are 22% less likely to choose contactless payments than women – could it be that men are less likely to trust contactless technology?
The UK adopted contactless technology in 2007, which was significantly earlier than in the US, which only launched ‘tap to pay’ in 2015. This is possibly why trust in contactless has skyrocketed recently. The increase of the UK contactless limit to £100 in October 2021 may have also played a significant role in its popularity over the past few years.
In response to the data and the news that ASDA is moving to cashless, Jodie Wilkinson, Head of Strategic Partnerships at takepayments, says:
““The new data shows fairly clearly that the majority of customers want to pay with contactless methods — whether that’s physical or digital cards — wherever they shop. The fact that ASDA – one of the UK’s largest supermarket chains – is rolling out “pay at the pump” just shows that we are moving to a cashless society. In fact, ASDA has said that 90% of transactions made at their petrol stations are already cashless payments.
1 in 3 of our respondents said they don’t carry cash. Failing to accommodate cashless customers could put businesses at a disadvantage, as cash-free shoppers may take their money elsewhere. However, the results also show a divide, in terms of gender and age, with the over 55s much less likely to adopt the new technology of mobile wallets and stick to more traditional payment methods.
For those still unsure about adopting card payment solutions, there are several potential benefits to consider:
Faster payments — Today, card payments are three times faster than cash transactions. Going cashless reduces queueing time and allows for more efficient service so you can get on with your day.
More convenient — Cashless transactions eliminate the need for cash machines or bank visits. Mobile payment options cater to a broader customer base and can promote accessibility and inclusivity for those who may struggle to withdraw cash.
Enhanced safety – Cashless transactions reduce the risk of robbery and card payments are less susceptible to fraud compared to cash because improved security measures in card payments reduce the risk of counterfeit money.
Improved budgeting and rewards – Digital transactions provide automated electronic records on your mobile banking app which makes for easier budgeting. At the click of a button you’re able to see exactly where you have spent your money and where you could cut back. By using cash you may also miss out on interest or cash back options. Credit card providers also often also offer incentives like points schemes and cash rebates.”