Cash the preferred medium for consumers in times of recession
According to the latest data published by the British Retail Consortium (BRC) cash is being used by UK consumers in 56 percent of all transactions and it seen as the most popular form of payment as well as being the most cost effective for retailers.
Despite the continued impression that banks have created, the BRC’s Annual Cost of Collection survey which includes over half the UK’s retail sales the recession has meant that consumers are reluctant to part with their money and as a result cash is being used as a way of monitoring spending having reigned in the use of faceless cards.
The BRC claimed that the average cash transaction costs retailers 2p, debit card payment costs 8p and credit card payments 35p and so if all payments were being made by cash this would mean that more than £800 million would be saved and this could then be passed onto consumers.
According to Stephen Robertson the director general of the BRC the reason why there are conflicting reports that claim that cash is dead is because banks are always vying for new cards and methods of payments and it is in times of recession where they are in a position to increase their profits at the expense of their cards holders and users.