Cash utilization has grown for the primary time in a decade as households look to steadiness their budgets amid the cost-of-living squeeze.
Across the UK, cash and banknotes accounted for practically a fifth (19%) of transactions in 2022, in response to the British Retail Consortium (BRC) annual Payments Survey.
Its report stated: “This year’s Payments Survey shows an increase in cash usage for the first time in a decade, up from 15% (in 2021) to just under 19% of transactions (in 2022).
“Faced with rising residing prices, money was a great tool for some individuals to handle their funds and observe their day-to-day spending.”
The improve additionally displays a pure return to money following the contactless change throughout the COVID pandemic, the report stated.
The BRC stated it’s the first time since its reviews began in 2013 that year-on-year money utilization has elevated.
“However, the recovery in cash use in retail is fairly minimal, with only a relatively small increase as a share of total sales by value, up from 8.2% in 2021 to 11% in 2022,” the report acknowledged.
“It appears that whilst a small percentage of people have returned to pre-pandemic habits, for a large portion of the population, the pandemic has had a lasting impact on how much we transact in cash.”
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Card funds have been used for 76% of transactions in 2022, with debit playing cards accounting for round 4 in 5 of those transactions.
Retailers spent £1.26bn on card processing charges in 2022, the BRC stated.
Alternative fee strategies, resembling purchase now, pay later, elevated in recognition in 2022, from 2% of transactions in 2021 to five% in 2022.
People have additionally been making smaller however extra frequent funds as they handle their budgets.
The variety of transactions elevated from 17.2 billion in 2021 (47.2 million per day) to 19.6 billion in 2022 (53.7 million per day) and the common transaction worth fell from £24.49 to £22.43, as customers shopped round.
Source: information.sky.com”