Cash and Geography
Thursday 9th September 2010
Cash use 'depends on geography'
Consumers in different areas of the UK have differing levels of cash use, according to the Royal Mint.
Cash use as a proportion of spending is generally higher in northern regions than in areas such as London, said Andrew Mills, of the Mint.
He added that the "piggy bank factor" meant some people found it easier to budget with cash at a time of economic uncertainty.
The comments come after a report suggested the use of cash would fall.
Cash payments will account for less than half of all transactions in five years' time, according to research by the Payments Council.
The council, which oversees the strategy on payments systems, claimed that "cash is king no more" as card payments accelerate and notes, coin and cheque usage declines.
Coin demand
Demand for newly minted UK coins stood at 1.2 billion pieces in 2008-9, with a value of £163m. This figure has been relatively static for the past five years, and demand is expected to remain the same for the next year.
Mr Mills, director of circulating coin at the Royal Mint, said that although changing payment systems would affect the future of coins, they were still a key part of day-to-day use.
"I think that during my lifetime, there will always be a role for cash and coinage," he said.
But he said that, at present, there were marked regional and socio-economic differences in the use of cash.
In London, where cashless options such as the Oyster travel card were prevalent, the use of cash was lower than in areas further north.
He said there was a strong historical link to coinage, with the Mint having existed for 1,000 years.
As well as general coinage, and commemorative editions, the Royal Mint produces coins for 60 countries from its base in South Wales.
Some 20% of its production of five billion coins is for the UK.
Read the remainder of the article at http://news.bbc.co.uk/1/hi/business/8622336.stm