Cash is king in a downturn

The current financial environment has rocked consumer confidence and people worldwide are feeling the pinch. Below are some interesting statistics showing that consumers are turning to cash over credit and debit cards in order to manage their finances:

• 60% of Europeans anticipate a long-lasting economic downturn and lower purchasing power in 2009.

• Level Four found that 43% of Britons feel most in control of their budgets when using cash from ATMs.

• The British Retail Consortium found that cash payments were the predominant payment method in the UK last year accounting for 60% of all transactions, up from 54% in April 2007.

• Zogby International has stated that 73% of US customers bought gifts with cash over the festive period .

• In Australia cash accounts for 70% of all consumer spending.

• This growth in cash payments is clearly evidenced by the increase in the use of ATMs with cash withdrawals up by £367 million in the UK in 2008 compared with the previous year.

Martin Macmillan