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Cash and cheques are out; debit cards and Faster Payments are in

Published on Wednesday, September 08, 2010

The use of traditional payment methods took a considerable dive during the second quarter of 2010, according to figures from the Payments Council, with cash and cheque usage declining and Faster Payments and debit card transactions growing.

Despite widespread concern regarding the discontinuation of cheques, largely from politicians and charities, the Payments Council and its member banks have already voted to stop clearing them by 2018.

This bold move seems to be ratified further with every day that passes, as current statistics reveal that cheque usage has dropped by 10%, or £21.5bn, on the same period as last year - the equivalent of 290,000 fewer cheques written per day of the quarter.

To add to this, the amount of cash withdrawn was 3.2% down during the same time period.

In stark contrast, debit card usage rose 12.4% year over year, and Faster Payments saw a staggering 67% rise as banks improve their offering to consumers and corporates alike.

Sandra Quinn, director, communications at the Payments Council, commented: "The payments revolution continues apace in the UK. Cheque usage is shrinking dramatically, while credit cards hold less appeal for consumers and businesses. We use cash less where there is an easy alternative, but we're years away from cash falling out of fashion. Debit cards are taking over our daily purchases, while Faster Payments are fast becoming how we transfer our money electronically."