A study by the British Retail Consortium (BRC) has shown that paying by debit card is the preferred way to pay for a product. This is driven by contactless cards and the growth in online sales.
The use of customers buying their goods in cash has decreased by 14% in the past five years while the use of debit cards has increased by 11%.
Helen Dickinson, director general of the BRC, says: “Cash use down 14 per cent in the last five years is a milestone in the development of our digital economy. It shows that customers are embracing digital shopping whether online or on the high street and retailers are adapting and evolving to meet the demand with excellent services.”
Paypal have launched a global campaign to promote a range of its payment options such as pre-order and pay at the table services at restaurants. These are all contributing towards digital shopping.
Banks have increased the price of handling card payments for retailers. The average cost of a retailer to process a credit payment is now 40.9 pence and the cost to process a debit card on average is 8.8 pence.
The UK Cards Association believe that this is still good value and that retailers need to be making a fair contribution to the cost of processing transactions.