Human Error And Theft Costing UK Businesses £9.4bn A Year In Cash Payments

Survey finds 34% of businesses believe use of cash will decline over the next 20 years, with contactless set to overtake it by 2020

Human Error And Theft Costing UK Businesses £9.4bn A Year In Cash Payments

The UK’s small and medium-sized businesses are losing out on £9.4bn a year due to cash payments, according to research from payment software provider Sage.

Members of staff stealing cash (24%) and human error were found to be the main factors in lost cash, with 56% of business respondents claiming to spend up to an hour each week counting and carrying cash to the bank.

Of those surveyed 34% said that cash use is likely to decline over the next 20 years, with contactless expected to overtake it as the most popular form of payment by 2020.

The research, which also polled consumers, found that 90% think it’s important for businesses to offer multiple methods of payment, with 58% agreeing they’d be more likely to shop somewhere if there are more ways to pay.

Surprisingly, older generations were discovered to be the most willing to move on from cash, with 59% of respondents over 50 claiming they either don’t or have little dealings in cash.

Seamus Smith, Sage Pay’s CEO, said: “The stats we’ve seen come out of this study are part of a wider trend. We know that cash use is in decline. The number of cashpoints in the UK has hit a peak, yet people are withdrawing cash less and less.

“Payments should be seamless, frictionless – and more often than not, cashless. Innovation in the sector has never been greater but small & medium businesses must keep pace with change. They are the lifeblood of the UK economy, and their success is critical to our national growth.”

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