I still don't believe we will become a cashless society....
blueblade
Posts: 88,859 Forum Member
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.....despite the fact that last year, for the first time, non cash transactions exceeded cash payments for the first time.
People still like to have notes and coins in their possession. Yes, card and direct debit payments are useful, but they can never totally replace cash. I certainly hope they don't as it will mean that you can never drop out of sight for a few days if you want to, nor can "discount for cash" transactions occur again.
Supermarkets prefer cash, as it incurs less cost for them. Also, many e bay sellers prefer a cheque, as paypal also incurs a cost.
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I have noticed though, that you simply don't get the queues at ATM's that used to happen. That might be because there are more of them.
People still like to have notes and coins in their possession. Yes, card and direct debit payments are useful, but they can never totally replace cash. I certainly hope they don't as it will mean that you can never drop out of sight for a few days if you want to, nor can "discount for cash" transactions occur again.
Supermarkets prefer cash, as it incurs less cost for them. Also, many e bay sellers prefer a cheque, as paypal also incurs a cost.
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Cashless payments have overtaken the use of notes and coins for the first time, according to the industry body. The Payments Council said the use of cash by consumers, businesses and financial organisations fell to 48% of payments last year.
The remaining 52% was made up of electronic transactions, ranging from high-value transfers to debit card payments, as well as cheques. Cash volumes are expected to fall by 30% over the next 10 years. The Payments Council, which oversees the system of transactions, said that moves towards debit card, contactless and mobile payments would drive the move away from cash.
Despite the growth of digital money, cash remained the most common specific payment method among shoppers and businesses in 2014. Some 18 billion cash payments were made in the UK in 2014, worth about £250bn. Debit cards accounted for 24% of payments, followed by direct debits which accounted for 10% of payments. Cash was used in more than eight out of 10 purchases in pubs, clubs, and newsagents last year, but in fewer than three out of 10 in petrol stations.
I have noticed though, that you simply don't get the queues at ATM's that used to happen. That might be because there are more of them.
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I also like to have cash and will continue to do so. Car boots, parking, machines of various types and all those jobs where it's cash in hand. I can't see the window cleaner accepting American Excuse cards
The only cash I tend to carry is for lunch in our staff cafe becuase they don't accept cards.
I do think coins and notes will be gotten rid of as cards with credit on becomes the next form of payment. I think the world will eventually move towards a moneyless society.
I am not sure what people like will have any bearing on it one way or another. Also, what people like will change over time/generations.
Well, they can. It's perfectly possible. I was hearing about a cashless shop the other day.
Not sure I am familiar with these transactions. Can you tell me more?
Is this correct? I was under the impression that cash costs supermarkets more (security, paying someone to count the cash, bank charges for cashing it/getting change, transporting the cash) and this is why they started offering cashback, so that they have less cash in their tills.
Again, I don't think peoples' preferences have anything to do with it. Cheques are just about finished anyway and it's about time. People don't have cheque books. I've had a cheque for £30 refund for electricity sitting in my house for a few weeks now as going to the bank is such a pain in the butt.
Interesting thread though, despite my criticisms
They work quicker than they use to too.
Cashback too
I always carry cash but I can't actually remember the last time I went to an ATM outside a bank (rather than outside a retailer) - 20 years or so ago there was no choice
This is outrageous, as it assumes all people have/want smart phones, and that they have them with them at all times. Also assumes all oeprator signals are adequate in the vicinity of the meters.
A pre-pay system would be better e.g. vouchers from local shops, ordered online before hand etc.
Agreed.
Not to mention Cashing out requires two people to basically be counting money at the same time. It might cost less than 8p per transaction for a major supermarket to process electronic payments.
So none of the time consuming and therefore costly cash processes, reduced to no risks inherent in using and processing cash, and should a supermarket have invested in suitable anti fraud precautions such as Chip & Pin, any losses due to fraud are covered by the card issuer.
Factor in quicker payments which means more transactions per hour can be processed, meaning either more sales or less staff costs - it's easy to see why Supermarkets would prefer electronic transactions over cash.
I went to a show with a few friend the other week my mate payed for my ticket on his card as I was running late .. I got there and have him the cash for the ticket and he looked like I'd handed him a time bomb
You don't need a smart phone. And it appears that the Cashless parking meters still have a card slot.
https://www.aberdeencity.gov.uk/web/files/Parking/PayByPhone_acc_leaflet.pdf
even paying a bill for a business will get you a bank charge but cash won't and as a lot of charges are %ages it soon can mount up if you settle a few grand and the bank wants 20-30 quid on top just for the fun of it
Yes cash has its drawbacks such as people with shotguns named big vern etc but for the small guy in business its still king and will be for a long time
You're correct there. The banks will push whatever is convenient and profitable for them personally, irrespective of what their customers want.
For example, when I had some internal decorating done by a contractor last year, the charge was £1150. He was happy to make that a round £1000 if I paid him cash in notes, which I did.
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According to a piece I heard on the today programme this morning, about this very subject, when Victoria Cleland, the new Chief Cashier at the Bank of England, and Peter McNamara, Chief Executive of cash point providers, Note Machine, were interviewed, this is the case. Now I'm no expert on the inner machinations of retail stores, but what was said sounded perfectly plausible to me.
Incidentally, they were both agreed that there is a very strong place for cash in society.
If you want to listen, the programme can be found here The clip relating to cash/cashlessness can be located at 2:22:00 onwards, and the specific question you asked is at 2:25:00.
I've got a cheque book, which is still occasionally used, so useful at times.
Why are some people so vehemently opposed to cheques, when they are barely affected by them? Weird.
They'd be even quicker if they didn't leave that "thank you" message for about 30 seconds after the previous customer has walked off, stopping the next customer from inserting their card until the message has cleared.
Because banks no longer issue them by default, so if someone wants paid by cheque then it's an absolute pain to go and get one. If someone pays you by cheque, then again it's an absolute pain to have to go to the bank to cash it (why are banks only open when people are at work?)
I'm just about old enough to remember then ATMs were something of a novelty in the UK.
Your cash either came straight out of your wage packet or you had to stand in a queue in the bank and ask for it.
These days, almost everybody takes the convenience of an ATM for granted.
I suspect that, within 20 years or so, it'll be just as common for people to make their "cash" purchases using NFC devices rather than via a wallet full of physical currency.
You can easily order one online.
I'm not that lazy that I can't be arsed to walk to my bank branch and pay a cheque in occasionally ;-) Not that it happens very often, of course. Most of the time, my bank account or paypal account is simply credited with the amount
It's nothing to do with lazy. I am at work when they are open. I am simply waiting for the next Saturday that I have free so that I can head down before they shut at 12. I'm sure there are better ways to do it than little bits of paper.
I only have one direct debit for my internet everything else is paid monthly quarterly or yearly. I will soon have to sort that out as we are getting older and having DD's would be cheaper and easier. I am still old fashioned in my finances as you can tell.
Great if your bank is in walking distance. Mine is a 30 minute drive away with a steep parking charge at the end.
Never heard of sticking it into an envelope with a paying-in slip and putting it in one of those red things, called post boxes!!
Erm... no, actually.