Cash payments now account for just over half of retail purchases, as use of cards and coupons continues to rise.
According to the British Retail Consortium (BRC), which analysed 60% of all retail payments made, the use of cash has sunk to a new low.
Cash was used for 54% of all transactions, representing a 7% decline in volume and a near 10% decline in value from last year.
Debit cards accounted for around 30% of all transactions, while credit cards accounted for just below 11%.
And the speed in which people are reverting away from cash to alternative methods of payments is accelerating, it said.
Payments made by vouchers and coupons more than doubled in popularity, to account for 5% of the total number of transactions.
The use of cash has fallen to a new low, says the British Retail Consortium.
"New ways to pay and new ways to shop are shaping the retail landscape like never before," said Helen Dickinson, the BRC’s Director General.
"Cash is still the most popular way to pay, but our survey shows how rapidly alternative and emerging methods are gaining ground, with growth more than doubling on the previous year, albeit from a low base.
"These methods will be the ‘ones to watch' in the future, and retailers are investing heavily to make sure their customers have choice and convenience in ways to pay, whether in-store, at home or on the move."
The BRC reiterated its concerns that, unlike cash, credit card transactions were more costly to retailers, averaging at 38p.
"The one jarring note is that charges remain disproportionately high," Ms Dickinson added.
"They continue to rise even though credit card use has fallen. It beggars belief that retailers incur average charges of 38p per credit and charge card transaction, 25 times more than for cash."
James Booker
Which4U
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