A new survey by the British Retail Consortium has reiterated the importance of cash to the sector, despite the growing uptake of cash-free transactions.
While card payments remain on top, cash has proved to be important in budgeting, with a rise in transactions up by 1.1% from last year according to the BRC Payments Survey.
A rise in cash transactions has been reported for the second year in a row and accounted for 19.9% of transactions in 2023, up from 18.8% of transactions in 2022.
The survey shows that cash has been recognised for its importance during the cost-of-living crisis, with all large retailers still committed to accepting cash in their stores to help consumers who are budgeting.
The BRC reported that card payments accounted for over 75% of transactions and 85% of spending.
Cash has a lower processing cost compared to other forms of payment, and the BRC is keen for consumers to still have access to cash payments.
The group is calling for regular reforms and checks on card processing fees, with commercial card fees rising by 14%.
BRC payments policy adviser Chris Owen said: “Persistent inflation and the cost of living crisis continued to affect households across the country, and many consumers used cash to budget more effectively.
“However, the dominance of card payments continues apace, accounting for over 85% of spending.
“Card fees continue to rise at a substantial rate, and the Payment Systems Regulator must act upon the harms it has identified in its current market reviews.
“It must move swiftly to reform the market and implement remedies including price caps on fees and price rebalancing measures.”
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