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More than half of all payments made by card even before coronavirus
Jun 3, 2020
More than half of all payments were made by card last year - leaving the UK "inadvertently" prepared for the coronavirus lockdown, banks say.
It was the first time debit, credit and charge cards accounted for the majority of payments, as cash fell to fewer than one in four payments, UK Finance said.
The trade body said cash withdrawals had since fallen sharply amid lockdown.
It has yet to make long-term forecasts on whether the way we pay for things will change long-term.
Campaigners and banks say cash will continue to be an option for consumers for many years.
Paying in the pub
Withdrawals at ATMs fell by two-thirds in the early weeks of the crisis before levelling out at half of normal levels.
People are buying online and, when they do go to the shops and supermarkets, they are being encouraged not to use notes and coins. The Wetherspoon pub chain, for example, has suggested customers should pay by app or by card at the bar when its doors reopen, and others could follow suit.
Previously UK Finance has said cash would be used in fewer than one in 10 transactions within a decade, but it was unclear as yet whether that prediction may accelerate as a result of changing consumer trends following the virus crisis.
Its research showed that, out of 40 billion payments made last year, about 30 billion were "spontaneous" day-to-day transactions by consumers. Overall, cards were used in 51% of transactions.
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