Card Payment adoption rate expected to grow by up to 7% annually
The increasing popularity in card payments has led to observers predicting that they will eventually overtake cash as the preferred mode of payment. Three years ago, the hospitality industry in the UK saw a 6 per cent rise in the use of cashless methods of payment. Operators that did not accept these modes of payment had been left reeling.
This trend shows no signs of slowing down. The credit payment adoption rate is expected to grow by up to 7 percent. This means that businesses that are still reluctant to accept credit and debit card payments can expect to fall even further behind as the trend towards contactless payments continues unabated.
It is clear that the decision two years ago to increase the amount a person can spend using card payments from 20 pounds to 30 pounds was not a bad one. The limit change led to an instant spike in the number of cashless transactions.
The impact of the increased use of card payments has been especially felt in supermarkets and restaurants. Pubs and bars have not been left behind either and have had to adapt their systems to be more adaptive to a society that is increasingly moving away from cash as the standard medium of payment.
Businesses that don’t accept card payments face a big challenge when competing with their competitors who do. According to statistics, they are not “in tune” with what the majority of customers want and risk falling behind and losing out on a lot of additional business.
Lower transaction charges
Part of the reason for the increase in card payment adoption rate is the reduction in transaction charges for both debit and credit cards. Data shows that in the last three years alone, overall charges have dropped by more than 6 percent. A high number of people are now comfortable using card payments to coffee, lunch and grocery bills.
Preferences according to age-groups
There are notable differences in the use of card payments between different age groups. A survey was conducted by Worldpay on 2,000 consumers in the UK. The findings showed that a majority of people over the age of 45 still prefer cash as their method of payment. On the other hand, most 25-to-35-year-olds would rather never have to carry cash.
At the end of the day, all consumers want is to not have to worry about whether they have enough cash in their wallets or not. Whether it’s a coffee date or just another leisurely outing, all they want is to be able to pay in a quick and convenient way.
Ensuring card payments are secure
With the card adoption rates continuing to increase, there is an increasing need to ensure that these payments are safe for both the businesses and the customers. It is up to a business to ensure that customer’s information is kept safe. Customers trust the business which is why the feel comfortable enough to give their cards. The best way to do this is to comply with the highest data security standards possible.
Hackers are increasingly targeting card details. This means that business establishments have to up their game as card breaches are becoming an issue that can no longer be swept under the rug.