Cash payments make a comeback

Consumers are increasingly want ing to be able to pay for online goods and services using cash, according to research. A survey carried...

Consumers are increasingly wanting to be able to pay for online goods and services using cash, according to research.

A survey carried out by YouGov on behalf of PayPoint.net, a new division of PayPoint, found that people want to pay with cash even when they shop online.

PayPoint.net offers a service where consumers can make an online purchase, which is completed when they visit a PayPoint operator and pay in cash.

According to the survey of 2000 people, online shopping is set to continue to grow despite the recession. It found that 81% of respondents were expecting to spend more or the same amount online this Christmas and 20% of respondents said they are trying to use cash more often than credit or debit cards.

The reasons for doing this vary. More than two thirds listed amongst reasons thatpaying by cash helped them better manage their finances,and 33% said they were worried about debt.

According to Mark Hoban MP, shadow financial secretary to the treasury, a service of this kind will help people excluded from online shopping. About 11% of UK adults do not have a bank account and cannot pay for things online, he said.

These are often the elderly or people with poor credit histories.

"There is a group of people that do not have access to credit or debit cards and are excluded from the benefits you get from shopping online," he said.

These advantages include lower cost products and services."This will give these excluded people the opportunity to access the products and services we often take for granted," added Hoban.

However, the number of people that have internet access, and are, therefore, capable of shopping online, is also a problem that excludes people, according to Simon Griffiths, senior research fellow at the Social Market Foundation. He said about a third of UK households do not have a computer, adding, "The digital divide is still a real issue."

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