Holidaymakers are still choosing cash over cards when it comes to paying for things abroad, a new report from the Post Office has found.
The report, which predicts that overseas currency sales will reach GBP2.3 billion this year, shows that cash is still the number one choice of payment for Britons traveling abroad, with almost half (47%) using local currency while 33.6% use their debit or credit card.
Travelers cheques remain a popular choice with 19% of holidaymakers, but as card payments become increasingly popular they have begun to wane. Sales dropped 12% last year in spite of a 7% jump in the sale of euro traveler’s cheques during the same period.
With so many places now offering commission-free deals and competitive rates, hard currency is unbeatable for convenience and value-for-money. And with budget airlines flying to even more destinations, we are seeing demand for a wider range of foreign currencies for different countries, especially eastern Europe, said Kevin McAdam, head of travel and leisure at the Post Office.
As travelers begin venture further a field outside the on holiday, new currencies such as the Czech koruna and Polish zloty have climbed into the Post Office’s top twenty currencies chart. The Czech Koruna has secured seventh place and the Polish Zloty 17th place. The euro and US dollar still top the charts in first and second place with a 78.2 % and 11.5 % market share.
Customers now want more flexibility from their holiday money and are supplementing cash with convenient and secure alternatives such as pre-paid currency cards. In fact, our report shows that these are already the favorite way to pay for more than 150,000 holidaymakers, Mr McAdam added.