BANKNOTE manufacturer De La Rue recently announced that demand had hit a 20-year low, citing lower cash usage since the pandemic when central banks stocked up on currency. It's a good excuse to look at where cash sits in the nation's payment mix. Using YouGov Profiles, we can do just that.

Our data shows when it comes to buying products in-store, contactless debit card payments are the most commonlyused method (63 per cent) among Britons, with cash coming in second (56 per cent).

Cash is significantly less popular for in-store purchases among Britons aged 18-34 (40 per cent): it's significantly less commonly used than contactless debit card payments (64 per cent) and roughly as used as chip-and-pin debit card payments (40 per cent). The only age group where cash is still dominant is among the over-55s.

So cash is still an important payment option, and reports of its death - which have been circulating for some time - remain exaggerated. But while its status among older consumers may be relatively assured, when De La Rue rolls out its new King Charles banknotes next year, most younger consumers - on the current evidence - won't even use them. Stephan Shakespeare is the co-founder and CEO of YouGov

(c) 2023 City A.M., source Newspaper