Cash payments continue to decline

Any salon business still not accepting card payment could be missing out on huge volumes of custom, as new research suggests that cash payments continue to be in decline. The popularity of cash and cheques continues to drop off, according to figures from Halifax. The research shows that nearly 85% of all current account transactions made by Halifax customers are now electronic. Debit card transactions now account for 56.7% of all Halifax current account transactions, up from 54.9% in 2013. Meanwhile, Faster Payments usage, while still low, is growing fast, up from 2.3% to 2.7%. In contrast, cash withdrawals now make up just 16.6%, down from 17.9%, and cheques just 1.2%, down from 1.5%. Cash withdrawals now account for just £18.33 of every £100 spent, a £1.82 decline since 2013. Nick Young, head of current accounts at Halifax, says: "This trend away from cash is likely to go on as banks innovate and provide customers with more convenient ways to pay for their goods and we continue to see the rise of new, non-traditional entrants into the payments market. Consumers now have much more choice regarding payment methods and have adjusted their spending habits accordingly."