Cash use in the shops rose for a second year in a row in 2023 after a decade of
falls, according to the British Retail Consortium (BRC).
Notes and coins were used in a fifth of transactions last year as shoppers found
cash helped them to budget better, said the BRC.
Overall, customers visited shops more frequently but made smaller purchases. The
total number of transactions rose from 19.6 billion to 21.0 billion while the
average amount spent per transaction fell from £22.43 to £22.03.
Meanwhile, card fees paid by retailers continued to grow. The total amount paid
by retailers to banks and card schemes rose by over 25% in 2023. This brought
the total card fees paid to £1.64 billion.
Chris Owen, Payments Policy Advisor, British Retail Consortium 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 (PSR) 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.'
Internet link: BRC