August 25, 2015
Payment cards are everywhere these days. So you could be forgiven for thinking that cash as a transaction medium is on the way out.
Nothing could be further from the truth. It's still widely used – and often preferred – in the UK.
Latest research shows that cash is still used for almost half of all payments – and, for consumers rather than firms, it's still the most popular payment method by quite a margin.
How come? Well, cash has many advantages over other methods of payment, especially for face-to-face transactions. For instance:
• It's more secure – no personal information is exposed and potentially put at risk, as it can be with cards
• It's quick – no messing around with cheques, signatures, card swiping, or mobile phone waving
• It's simple – easy for users to track how much they have available and how much they've used
• It's flexible – great for small-denomination transactions
Plus, of course, it's convenient now that more ATMs than ever are available – almost 70,000 nationwide at the last count.
For the first time, the number of machines offered by independent deployers has eclipsed those owned by banks and building societies.
And the number of free-to-use machines has reached a record of more than 50,000, jumping 5.2% in 2014.
According to the latest research by the Link cash machine network, ATMs are used around 2.8 billion times a year to withdraw a total of £189 billion, with more than nine out of 10 consumers using them.
An additional attraction is the increasing flexibility of cash machines, beyond simply dispensing notes. For example, ATMs offer a variety of functions including making charitable donations, topping up electronic wallets, and verifying electronic banking transactions.
They're also more user-friendly than ever. In fact, some of the latest models allow customers to complete transactions using voice commands.
So, although card use continues to increase, cash will continue to be the payment mechanism of choice for many people, for many years to come. Yes, cash is still king!
A modern, sharp-looking ATM is good for your business. Thinking about a cash machine upgrade? Contact your DC Payments representative by email or by phone at 0800 093 2350.
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