Use of cash falls again, says British Retail Consortium

The consortium’s Payments Survey found that 81% of transactions were by card in 2020, compared to 78% in 2019.

The BRC said its survey also revealed that the pandemic has “changed the way we shop”, with consumers making fewer but bigger shopping trips.

Total transactions fell 13% in 2020 but customers spent 20% more per transaction with the average transaction value up from £20.16 in 2019 to £24.15 in 2020.

The BRC renewed its call for the government to step in to stop what it describes as anti-competitive practices in card payments that meant retailers had to pay higher fees.

Andrew Cregan, the BRC’s payments policy advisor, said: “The pandemic has accelerated the trend towards card payments, with more than four in every five pounds spent in retail now made with credit or debit cards.

“Basket sizes also rose, as customers made bigger, but fewer purchases. While cash use has declined in importance, it remains vital for many people who do not have access to other payment methods.

“Despite the general movement to card payments, retailers are being punished through the soaring cost of accepting such payments.

“Parliament needs to urgently intervene in this anti-competitive behaviour by regulating card scheme fees and abolishing interchange fees, both of which ultimately hurt consumers.

“Card firms are abusing their dominant market position, and this must come to an end.”