View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Networks
April 13, 2015

Cheque and cash use falls as electronic payments grow

Dominance of the debit card has yet to eliminate old-fashioned spending.

By Jimmy Nicholls

Cash and cheques are continuing to decline in popularity in the UK as electronic payment becomes ever more dominant, according to figures from the bank Halifax.

Customers were found to be making 85% of current account transactions electronically, with online banking, mobile banking, and contactless and mobile payment systems such as Paym driving the trend.

Nick Young, head of current accounts at Halifax, said: "This trend away from cash is likely to go on as banks innovate and provide customers with more convenient ways to pay for their goods and we continue to see the rise of new, non-traditional entrants into the payments market.

"Consumers now have much more choice regarding payment methods and have adjusted their spending habits accordingly."

Debit cards have continued to become more dominant in current account transactions, growing to 56.7% from 54.9% in 2013, with card payment now accounts for £30 of every £100 spent.

Faster payments, which includes contactless and mobile, has grown only narrowly from 2.3% to 2.7% of current account transactions, whilst cash use has slightly fallen to 16.6% and cheque use to 1.2%.

Despite the limited use cheques still account for more than £8 of every £100 spent, just over half that of faster payments, which account for £15 of every £100 spent.

Content from our partners
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape

Whilst the data confirms the direction of travel for modern payments it also reaffirms the longevity of old-fashioned payments.

This is in contrast to the views of tech-minded financiers such as the PPRO Group’s chief executive Simon Black, who told CBR last week: "I think in the future we’ll use cash as much as we use cheques today."

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU