If your business relies on taking payments in-person, online, or over the phone, then you should definitely implement a system which allows your customers to pay by credit or debit card. Not only is it extremely convenient for consumers, but it can be quick, easy and inexpensive. As a business selling a variety of products and services, accepting card payments may be expected of you, so if you don’t currently have a card payment process in place, then you could be losing valuable customers to your competitors.
Here are 10 stats to show you why you should be taking card payments…
1. Consumer spending has continued to grow, particularly in card spending, which rose to a monthly record of £53.9 billion, up by 0.9% from June 2016 (card expenditure statistics July 2016). The number of card purchases also increased, amounting to 1.2 billion.
2. According to The Payments Council, cash payment volumes are expected to fall by 30% over the next 10 years.
3. Some business owners may be concerned about the risk of fraud with card payment but it’s actually extremely difficult for fraud to occur with the latest chip and PIN card payment technology. Security processes are being increasingly improved day after day to make card payments even more safe and secure. Since the inception of the Dedicated Cheque and Plastic Crime Unit in 2002, the unit claims to have achieved £450 million in savings from reduced fraud and has recovered approximately 700,000 counterfeit cards (as of 2014).
4. The number of purchases within the retail sector rose by 4.0 million to 803 million in July, with the corresponding spend amounting to £25.1 billion, up by £185 million on June. The largest increase in spending was registered in the food and drink sub-sector, where spending grew by £77 million to £9.5 billion.
5. Large increases in card spending have been registered at a wide range of businesses, with the most sizeable growth evident at hotels due to the lower value of the pound and increased tourist activity.
6. Contactless payments in 2015 were 3.3x the number in 2014, and are expected to continue to increase over the next decade.
7. Cash payments in the UK fell from 64% in 2005 to 27% in 2015. 2015 was the first time cash was used for less that half of payments made by consumers, according to a study by Payments UK.
8. By 2025, Payments UK expect the average adult to make 30 card payments each month, contributing to a total of 20.9 billion card payments a year.
9. Contactless card payment now makes up one in five of all face-to-face card payments under £30.
10. Retailers, including smaller local shops, have become more likely to accept card payments, and the continual expansion of online shopping has driven the growth of card payments. According to Payments UK, Debit cards are forecast to overtake cash as the most frequently-used method of payment in 2021.
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