Alternative/emerging means of payment, such as online payments and money-off coupons, grew last year seemingly by 150%, although these remained a fraction of the total. But cash remains the dominant payment mechanism.
Cash is still the most popular form of payment in UK shops but the popularity of vouchers and coupons is on the rise, research has suggested.
The British Retail Consortium (BRC) analysed 10 billion retail payments in 2012 – 60% of all UK retail sales.
Cash accounted for about 54% of all transactions, but non-cash, non-card payments rose from less than 2% to 5% of the total.
This should be interesting to follow: PayPal, the online payments company owned by eBay Inc, just got a new rival in the race to develop a mobile payment service that can be used in physical stores.
Boku Inc, a big online mobile payments company backed by venture capital firms including Andreessen Horowitz and Benchmark Capital, unveiled a new service on Thursday that lets people pay with any mobile phone anywhere credit cards are accepted.
Boku already provides carrier billing through about 230 wireless carriers, including AT&T Inc, Vodafone Group Plc and Verizon Communications Inc in more than 60 countries. This service lets people pay with their mobile number and get the transactions charged to their monthly phone bill.