Credit card using consumers could spell death to cash

As consumers continue to move away from paper cash and increasingly adopt plastic to make purchases, one credit card expert recently said that the days of cash transactions could be extremely numbered.

CardSave chief executive, Clive Kahn, says that only 1 out of every 10 transactions will be made with cash in two decades time.  CardSave, a company which provides small business bank account holders with card payment machines, has seen its business increase by double over the last five years as small businesses increase their adoption of card payment options to support credit and debit card purchases.

The popularity of making purchases with plastic has been soaring, according to the UK Cards Association, whose statistics show that card transactions have gone up by more than 25 per cent from 2008 in the UK alone.  CardSave says that almost three out of every four consumers in the country carry £30 or less in their wallets, but more than 9 out of every 10 carry credit or debit cards, according to a YouGov-commissioned survey.

40 per cent of those surveyed said that being able to make card purchases everywhere would make things easier, and 50 per cent of research respondents felt that cash will become obsolete sometime in the future as retailers adopt this method.  Half of those who said as much indicated that it would most likely occur by 2035, while around 36 per cent expected it to occur ten years sooner than that.

CardSave indicated that there have been many sole proprietors, such as plumbers, who have begun to take card payments in order to make it easier for their customers to pay without having to use cash.

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