CASH USE DEFIES RECESSION
24 February 2009
LINK, the operator of the UK's cash machine (ATM) network, reports that around one in three people have changed the way they use cash because of the current economic climate. The research, conducted by YouGov for LINK, shows that of those who have changed their habits, 65% are using less cash, mostly because they want to control their spending or because they simply have less cash to spend. However the survey also showed that 33% are using more cash, either because using cash allows them to keep better track of what they spend or because they want to cut down on their use of credit and debit cards. LINK found that for December 2008 and January 2009 the total value of cash withdrawn through the LINK Network increased by 3% to £18.5 billion compared with the same period in 2007/2008
Graham Mott, senior LINK spokesman comments, "In the current economic climate people are becoming more and more aware of the need to manage their spending. LINK's survey shows some are using less cash, but others are using more because they find cash the easiest way of controlling what they spend."
More than three quarters of the UK's cash is obtained through cash machines* and the survey showed that spending on entertainment, such as eating out, visiting the cinema or going to the pub, was the number one use for cash withdrawn from ATMs, with over half of respondents saying this was how they spent their cash. This was particularly high for the 18-24 age range, where 73% reported they spent ATM cash on entertainment.
Other top reasons for withdrawing cash from a cash machine included purchase of food and groceries (36%), and discretionary spending such as clothes, DVDs and games (30%), while only 15% used cash for travel and just 7% used it for high-value goods such as TVs or games consoles.
For more information please contact Victoria McGovern / Karen Cooper at the LINK Press Office.
Email: firstname.lastname@example.org / email@example.com
Mobile: Victoria, 07971 293 594
Notes to Editors
* Source: Payments Council report on UK consumer payments, 2008
LINK connects almost every cash machine in the UK, both free-to-use and pay-to-use. The LINK network is the busiest ATM transaction switch in the world. The LINK Scheme brings together the banks, building societies and other institutions that issue cards and the operators of the 64,000 UK cash machines that make up the LINK network.
The LINK network processes around 250 million transactions a month and, at its busiest, it processes over one million transactions an hour. The LINK network has 46 members and there are more than 130 million LINK cards in circulation from 36 card issuers.
- All figures, unless otherwise stated, are from YouGov Plc.
- Total sample size was 2072
- Fieldwork was undertaken between 19th - 21st January 2009
- The survey was carried out online
- The figures have been weighted and are representative of all GB adults (aged 18+)