Yahoo Finance One in 10 trying to save cash ‘intends to make fewer contactless payments’
One in 10 (10%) people taking steps to save money expects to make contactless payments less often, a survey has found.
Overall, nine in 10 (90%) people polled across the UK in June intend to do something to save cash, the research from ATM network Link found.
The popularity of contactless payments has surged in recent years and the contactless card spending limit for a single transaction was increased to £100 from October last year.
It followed on from an increase in the “tap and go” limit from £30 to £45, earlier on in the coronavirus pandemic, in April 2020.
Among those taking steps to save cash, more than a third (36%) of people are putting off big purchases.
Nearly two-fifths (39%) of those looking to save intend to stop eating in restaurants or ordering takeaways, while a similar proportion (38%) plan to reduce the cost of their electricity bills and purchase value brands and/or yellow label goods as part of their food shop.
Nearly one in 10 (9%) of those trying to cut back intend to use cash more frequently, with some saying doing this gives them a better idea of how much they are spending.
And one in 20 (5%) plans to spread payments over a credit card.
A third (33%) of those trying to cut back intend to use their car less to reduce fuel costs, and more than a quarter (28%) intend to cancel a TV or gym subscription.
The survey also found that nearly a quarter (22%) of people have received a scam phone call or text message since the start of the Covid-19 pandemic.
The latest research also found that 68% of adults had used cash in the previous two weeks to pay for something.
This was slightly lower than in February (71%) when a previous survey was carried out.
People continue to experience situations where they want to use cash but cannot, Link said.
For many, especially those on fixed or lower incomes, there is no better substitute for budgeting to cash
Graham Mott, Link
Nearly a quarter of those questioned (23%) said they had recently preferred to use cash in a shop but instead used a card because the venue discouraged cash payments.
The UK Government has previously said it will legislate to protect the future of cash.
Graham Mott, Link director of strategy, said: “For some, card and digital payments mean they can track all their spending online or on the mobile banking. Yet, for many, especially those on fixed or lower incomes, there is no better substitute for budgeting to cash.
“Not everyone has access to cards or digital payments and they know exactly how much money they have when paying in cash for the bus or in the local shop.
“We are also expecting the Government to publish the Access to Cash legislation soon. This will be important to making sure that every community has access to cash on their local high street.”
– More than 2,100 people were surveyed on June 13 and 14.
