Behind The Times: UK Merchants Lose Millions Over “No Card” Policy

Britain is a country full of niche shops and charming cafes that attract both locals and tourists from around the world. Unfortunately, some of these shops don’t accept card payments and aren’t realizing that they’re shutting the door to the majority of customers who no longer carry cash.

According to Fresh Business Thinking, new research released by Judo reported that UK shopkeepers collectively lose 120 million transactions each year because they don’t offer card payments. Moreover, 92.8 million sale opportunities are lost due to customers avoiding shops that don’t allow card payments.

The research revealed that one-in-five consumers reported to have left a store in the past six months, and didn’t make a purchase because they couldn’t pay with their card. Similarly, 19 percent said they completely avoided going into a store if they knew they couldn’t use their card.

The circulation of cash seems to be further diminishing as 70 percent of consumers claimed they preferred to pay for everyday purchases with their card instead of cash. Judo’s research even reported that 61 percent of UK consumers said they would spend more money in a shop if they accepted cards, while none said they would not spend more.

Considering London is one of the largest international cities in the world, it is within reason that Judo reported businesses in London are most susceptible to missing out on transactions if they don’t take cards. About 50 percent of consumers in the capital city said they left any store that didn’t take card payments, and on average a London resident will leave a shop without making a purchase for the same reason. Londoners are also more likely to avoid shops that don’t allow card payments.

As a child or student, many of us carried around cash to pay for everyday purchases but it is evident that times are changing. Judo’s research proved that the younger shoppers are most likely to avoid a shop if they aren’t able to pay with card. Three-out-of-five consumers (59 percent) aged 18-24 years old, said they took their business elsewhere because the shop didn’t accept cards.

Dennis Jones, CEO of Judo, stated, “Card payment equipment has not kept pace with technology and it has become too expensive and technically complicated for many to use, which is why there are so many small retailers who still don’t take cards.”

It is becoming increasingly integral for UK merchants to understand that more and more consumers are carrying less cash and expect to pay with card. Offering more payment options for the consumer can only help maximize business growth and profits. If they continue to ignore these consumer trends, it is likely they will experience higher losses in the future.

To read the full story at Fresh Business Thinking click here