Independent retailers are £12bn out of pocket
By Anna White, Enterprise and property correspondent 12 Nov 2013
“Cash is bad for British business,” according to Sage Pay, a provider of payment technology.
The study from Sage Pay found that 64pc of all consumers cited cards as their preferred method of payment and almost one-in-three will put an item back on the shelf and go elsewhere if they cannot use plastic.
Simon Black, chief executive for Sage Pay, said: “Every day, UK retailers are watching £33m walk out of their shops. There is clearly a disconnect between what retailers are offering customers and how British consumers like to shop.”
Card payments now account for more than 50pc of transactions for small and medium-sized businesses.
Modern consumers like to review their spending on a monthly statement and want the payment protection insurance that comes with a credit card. They are also deterred from using cash by withdrawal fees.
Outlets that only accept cash tend to be grocery stores, restaurants, takeaways and pubs, as owners feel the associated costs of plastic transactions are too high.
According to Mr Black, the average amount of cash carried in a consumer’s wallet is £10 to £20 as Britain moves towards a cashless society.
The future, according to Mr Black, is paying by swiping debit and credit card details via a smartphone, reducing checkout queues. This will enable retailers to collect more data from the consumer, keeping shoppers abreast of promotions.
“There is a revolution in ecommerce that retailers cannot ignore,” said Mr Black.