Study reveals Apple Pay and contactless payments have overtaken cash payments as favourite ways to pay in-store.
Posted on in Business News
New research reveals that Apple Pay and contactless payments have overtaken cash payments by a landslide as our favourite ways to pay in-store.
The study comes from digital payment solutions provider, take payments 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.
1 in 3 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 incard 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.”