UK consumers walk away from stores that only take cash

By

Sandra Halliday

Published
Aug 21, 2017

How important are multiple payment options to UK shoppers. Very, it seems, especially if that means they’re not dependent on cash.

In fact, new research shows that not only are British shoppers increasingly using cards and contactless options instead of cash, but a huge number would walk away from a transaction if cash was the only way to pay.

Many UK stores, especially smaller businesses and sole traders, still don’t accept card payments, while some businesses impose an extra charge for low value card payments. So it’s interesting to know just how much business is potentially being lost. New research from First data suggests retailers could be missing out on a lot of trade.

It said 43% of shoppers would either not make a purchase at all, or would go elsewhere if they found themselves without cash, and no other payment option was offered.

Some 59% of consumers prefer cards, 98% of those who use contactless cards do so because it’s fast, and 48% of shoppers want options that offer an efficient shopping experience “with little interaction with store advisors”.

Meanwhile, among older consumers, 69% of over-55s still carry cash “in case of emergency” with just 20% of this age group ready to abandon coins and notes in a completely cashless society. But that compares to 50% of 18-24 year-olds, which suggest cashless really is the way forward.

The top frustrations with cash include trips to ATMs, the risk of it being stolen or lost, and it being harder to keep track of spending.

The figures come from a survey of 1,000 adults, conducted for First data by OnePoll, and the survey showed almost two-thirds of respondents saying they have encountered situations where businesses don’t take cards.

Raj Sond, General Manager at First Data, said: “Time-pushed, busy consumers are looking for a fast, hassle-free shopping experience. Convenience is paramount, and a smooth payment mechanism is vital in being able to offer a tailored, seamless service.

“With multiple shopping options on the high street and online it’s all too easy for potential customers to take their business elsewhere. Successful companies would be wise not to make assumptions about what their customers want.

“Historically, smaller retailers have been put off by the perceived cost of card acceptance, however when considering the banking time, cost and handling risk when it comes to dealing with cash, the cost of card acceptance is not the prohibiting factor it once was.”