Why cash is dead in 2019 (and what you can do about it)
- In Industry news |
- Written by Charlotte Davies on
Cash is dead. Well, ok not dead, but seriously declining, and it has been for a while. Below are 3 signs that cash is dying out, and what you can do to minimise the impact on your small business.
1. In 2017, card payments overtook cash for the first time ever in the UK
Two thirds of Britons now use contactless cards and mobile payments are also on the rise, with Apple Pay alone reporting 1 million new users per week. Mobile wallets are quick, convenient and more secure than carrying around a physical wallet. Are you keeping up with the way customers want to pay?
2. Bank branches are closing, cash withdrawals are decreasing
Let’s face it, it's easier to pay by a card or mobile wallet than having to queue in branches or travel to find an ATM - and Which? says that almost 3,000 bank branches have closed since 2015, with 250 cash machines closing every month. How much time could you save by managing your money electronically?
3. Customer attitudes are changing - and not just amongst millennials
It’s well known that young people aged 25-34 prefer electronic payments over cash, but their parents are also catching up - and the fastest growth rate for mobile banking is amongst 55-64 year olds, according to Visa.
So what can you do about it?
Merchants need to offer a range of payment options to customers, so that they can choose the method that best suits them - whether that’s by cash, card or mobile wallet. Accepting electronic payments doesn’t have to break the bank - the free Pomelo Pay Charge app was designed for small businesses to accept card and mobile payments at an affordable rate. You only pay when you use the app, at just 1.25% per transaction - that’s less than 13p per £10!