CASH remains the most popular means of payment on the high street, new figures show.
The figures from the British Retail Consortium (BRC) showed cash is used in 56% of all transactions.
The figures were based on a survey of 16,000 shops, large and small, multiples and independents, with a combined sales turnover of £139bn a year – or more than half of total UK retail sales.
The report said that with the recession leaving many customers reluctant to spend, cash was in favour as a way of helping them monitor and control their spending.
The BRC report also highlighted the extra costs banks impose on retailers for processing card transactions.
An average cash transaction costs retailers 2p while a debit card payment costs 8p – but stores are charged a massive 35p when a customer uses a credit card.
The BRC said it broadly supported new payment technologies such as “contactless” systems, which are increasingly being pushed as alternatives to cash.
But it said banks must reduce their charges to better reflect the costs they actually incur in processing these transactions.
