UK attitudes to payment: New report reveals some shocks

A new report into UK consumer attitudes to payments by European payment services experts Transact Payments has revealed some results which, according to CEO Kriya Patel, “will surprise even seasoned payments professionals.”

Why cash still matters in the UK payments mix

Conducted just eight weeks ago (April 2022) among a weighted sample of 1,000 individuals from all over the UK, UK payments in transition to digital reveals that cash, ATMs and cards are all still overwhelmingly popular as payment methods.

In the headlong rush to digital payments, it’s easy for industry insiders to lose sight of customer preferences.

While this report shows that digital wallets and other “alt” payments are making inroads into card and cash use, the more traditional forms remain overwhelmingly popular.

Furthermore, as data from Eurostat[1] and other sources predicts that older demographics will form a larger part of the population in the decades ahead, this report argues that cash, cards and an ATM infrastructure will be with us for years – if not decades.

Transact Payments CEO Kriya Patel said, “With the UK government now following Norway, Sweden and other markets in bringing forward legislation that guarantees access to cash, this report could not be more timely. Our report includes recommendations for how payments players should respond to these findings, which we’re sure will come to a surprise to many.”

The report found that UK consumers are concerned about the effect of dwindling cash infrastructure on the elderly, lower income workers, rural communities and others – and reveals that Brits are still highly reliant on traditional payment forms such as cash and cards, with seven in ten (72%) of consumers still carrying cash and coins.

Just 5% of consumers say they never use an ATM, while 40% say they use an ATM at least two or three times a month.

Although bank branches are in long-term decline in the UK and across Europe, the Transact Payments study shows that UK consumers like the security and convenience of in-branch banking, with 68% of consumers saying they would be concerned if their area had no bank branches in ten years’ time.

The Transact Payments report also includes findings on:

• Attitudes to ATMs, bank branches and cash use, divided by UK regions, age and gender
• Trust, confidence in and use of digital wallets, crypto and other “alt” payments
• Consumer attitudes to payments in the Metaverse
• Comparisons with the Nordics and other European markets
• Recommendations aimed to help payments firms make strategic decisions about cash management, card strategy and their approach to ATM management

Click here to download a copy of UK payments in transition to digital, the new report from Transact Payments.

[1] See Eurostat, February 2022:  “Population Structure and Ageing Explained”: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Population_structure_and_ageing

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