29/07/2011

By Karen Moss

Over two thirds of shoppers in the UK believe that cash is still king, according to independent research commissioned by Wincor Nixdorf. The retail and banking technology company says the results of its study calls the idea of an imminent move to a cashless society into question.

The continued preference for cash transactions is in large part due to consumers wanting greater control over their finances. Ed Brindley, director of marketing at Wincor Nixdorf says there is definitely something psychological at work too. “Shoppers like the tangible quality of having cash in their hands. They feel that in these tough economic times cash is more trustworthy and a better reflection of their true finances than credit cards. People don’t want to spend beyond their means. In order to adopt a cashless society, the industry needs to not only ensure the infrastructure and technology is flawless, but also convince consumers that cards offer the same benefits as cash.”

Of the consumers questioned, 58 per cent save card purely for large transactions and almost a third feel more in control of their finances when paying by cash. Those surveyed also agreed with the recent decision to cancel the abolition of cheques, questioning the practicalities of a sudden change to payment methods.

And 81 per cent of consumers said they would make more use of cards for everyday transactions if offered an incentive by retailers or banks, such as a discount on purchases or extra loyalty card bonuses.