Continuing a long term trend, cheques continued
to loose ground as a means of payment at retailers in the UK in
2007 reveal statistics published by payment industry body
Apacs.
to loose ground as a means of payment at retailers in the UK in
2007 reveal statistics published by payment industry body
Apacs.
Compared with 2006, cheque volumes fell 13
percent while in value terms a 7.5 percent fall was recorded
leaving cheques accounting for a mere 2.8 percent of all retail
transactions compared with almost 5 percent three years
earlier.
percent while in value terms a 7.5 percent fall was recorded
leaving cheques accounting for a mere 2.8 percent of all retail
transactions compared with almost 5 percent three years
earlier.
Debit cards by contrast continued to increase
in popularity as a means of payment, accounting for 41.7 percent of
retail payments, up from 39.7 percent in 2007 and 34.9 percent in
2004.
in popularity as a means of payment, accounting for 41.7 percent of
retail payments, up from 39.7 percent in 2007 and 34.9 percent in
2004.
Retail payments include those via the
internet.
internet.
Debit cards also grew in popularity at the
expense of credit cards, with payments via the latter remaining
flat and accounting for 23.3 percent of total spending compared
with 25.6 percent in 2004.
expense of credit cards, with payments via the latter remaining
flat and accounting for 23.3 percent of total spending compared
with 25.6 percent in 2004.
Commenting on the future of cheques Apacs’
director of communications Sandra Quinn commented that as retailers
increasingly refuse to accept cheques a large proportion of those
payments will migrate to debit card payments.
director of communications Sandra Quinn commented that as retailers
increasingly refuse to accept cheques a large proportion of those
payments will migrate to debit card payments.
Notably, in February 2008 Tesco, the UK’s
largest supermarket chain, began refusing to accept cheques in its
2,000 UK stores.
largest supermarket chain, began refusing to accept cheques in its
2,000 UK stores.
Tesco followed similar moves by other major
retailers including Sainsbury’s, Morrisons and Asda. In March,
another major high-street retailer, Marks & Spencer, followed
suit.
retailers including Sainsbury’s, Morrisons and Asda. In March,
another major high-street retailer, Marks & Spencer, followed
suit.
