Research into spending habits by Kalixa Pro, the small business mPOS solution, reveals that Britain is a step closer to becoming a cashless society.
Colin Swain, Global Head of Product at Kalixa, says: "Consumers switching from cash to card payments is an increasing trend that cannot be ignored. As a society we are increasingly reliant on cards and the flexibility they provide.
“Sole traders and small businesses such as boutique hotels are the lifeblood of the UK, however many of them are missing out on sales from their customers because accepting card payments is prohibitively expensive and not fit for purpose for their business."
He believe a new mobile phone app could help solve this problem.
Kalixa Pro’s survey of 2,000 consumers in the UK reveals that the average consumer carries three debit or credit cards with them at any one time. Card payments are by far our preferred payment method with 82 per cent preferring to use them for purchases over £20.
Cards even remain the nation’s primary means of payment for low cost items with 52 per cent of opting to use a card to pay for items that cost £20 or less.
However, 26 per cent have refused to buy something where abusiness insisted on a minimum spend for card payments.
A huge 71 per cent of Britons admit to carrying less than £20 in cash at any one time. Even more surprisingly half of them will walk no more than 100 metres to use a cash machine.
The average Briton now carries just £17.79 in cash. This amount is even less for youngsters with 18-24 year olds carrying only £12.81 at any one time.
More alarmingly for Britain’s small businesses is the fact that one in 10 people admit to paying less than full price for goods when they didn’t have enough cash on them.
Coffee shop owners are among the worst affected 34 per cent of people admitting to paying less most often at markets or cafes and coffee shops and 7 per cent admitting this happens when having to pay for unexpected tradesmen call outs at home.
In fact, the average consumer has underpaid by a huge £11.88 when card payments were unavailable.
"With this in mind, Kalixa Pro offers a service whereby it is commercially feasible for small businesses to offer their customers a face to face electronic payment facility," says Swain.
The Kalixa Pro small business mPOS solution, enables face to face payments from customers on their smartphone and combines a low, flat rate transaction fee of 1.99% with what it claims is the fastest settlement, withing three working days, on the market to address small businesses’ need to improve cash flow and increase sales.
There are no long term annual fees or monthly contract commitment, instead it offers a simple pay as you go service, so businesses can use it as much or as little as they like.
Small businesses and sole traders can order online for a one off fee of £59.99 +VAT and the reader will be sent out free via next day delivery so once the mobile app is downloaded, users can be up and running, receiving secure mobile payments on the move usually the next business day.