Plastic loses out due to credit crunch
Published 21/04/2008 | 14:09
Shoppers spent £5bn more in notes and coins last year, according to research that challenges the long-held view that Britain is becoming a cashless society.
A survey suggests the value of cash as a proportion of total spending rose from 32 to 34 per cent, the first reversal of a two-decade trend. The British Retail Consortium – whose findings were hotly disputed by payment body Apacs – suggested people wanted to put less money on plastic because of the credit crunch. Its Cost of Collection survey was based on results from 17,000 shops. The results reveal cash has increased from 54 per cent to 60 per cent of all transactions totalling £264bn.
"Reports of the death of cash are premature," said Stephen Robertson, director general of the British Retail Consortium.