With over 14 years’ experience in the payments industry, SmartDebit are a leading UK payment processor. Specialising in Direct Debits, a payment method that 75 percent of UK adults use, SmartDebit continue to keep up to date with the latest developments and key industry focuses.
The way consumers pay for their goods and services has changed over the past 12 years, traditional methods such as cheques continue to suffer, halving every five years. Reliance upon cash is also reducing, especially for recurring payments and high value one off payments.
The report reveals that Brits still make 3 out of 5 one-off payments using cash, however, being that 91 percent of these payments are under £25, the emergence of contactless payments in shops is beginning to add a different dimension to the way consumers pay for goods. By 2012, consumer spending is expected to be around 45 percent higher, the use of cash is forecast to decrease by 1 percent, and card usage may show decline by then as they make way for mobile payments technology.
A spokesperson from the Surrey-based Bacs approved bureau commented on the report, “The rise of the debit card over the past decade has been substantial. Consumers expect debit cards to be accepted everywhere they go; the corner shop, bars, on the high street and online. The payments industry is continually evolving and with the growing interest in mobile payments, it is very likely that over the next decade we will use our smartphones for the majority of payments, just as we use our cards today.”
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Cheques are become less and less common in the UK according to new research from global market research firm Mintel which claims contactless card use has overtaken cheque payments in the UK for the first time.
Payments for digital and physical goods made mobile operating system-based payments platforms like Apple Pay and Android Pay are expected to boom in the next few years according to new analysis from Juniper.