With all the various payment methods now available to consumers shopping online, more than 80% still prefer to use cash for online purchases of £10 (U.S. $15.55) or less, according to a survey by a U.K.-based online cash payments provider.
Ukash, which surveyed more than 1,050 consumers in its annual online payments survey, says that a rising number of consumers are opting for cash payments online "as a secure alternative to sharing their bank details."
Consumers can purchase Ukash 19-digit codes for cash at retailers and gas stations, and then use the codes to make purchases with online merchants who accept Ukash transactions, or load the codes onto prepaid cards and digital wallets.
Ukash, which provides its service globally, released the results of its survey Sept. 4 as a way to counter other studies that have predicted the demise of cash.
Ukash says its report "contrasts with suggestions from the latest WorldPay report, which predicts the demise of cash." WorldPay reported that 77% of consumers expect some coins to be discontinued over the next decade.
"Its surprising to see that respondents to the WorldPay study expect payment methods such as fingerprint and voice recognition to replace coins in the next ten years," Miranda McLean, marketing director for Ukash, states in a press release.
In the first quarter of 2013, Ukash enjoyed an increase of more than 10% in the use of its online cash in the UK, McLean says.
"We believe this proves that the use of cash and shopping online are not mutually exclusive," she adds.
By offering flexibility and security, Ukash views cash, vouchers and prepaid cards as more than simply payment options for low-income consumers.
The survey findings are supported by a recent report from the U.K. Payments Council, Ukash says, which showed an increase in the use of cash for transactions from 20.6 billion in 2011 to 20.8 billion in 2012. In the same period, the number of adults making all of their day-to-day purchases in cash increased by around 700,000, to 7.2 million.
The U.K. Financial Conduct Authority regulates Ukash, which is available in more than 50 countries. In April, Ukash signed an agreement with MoneyGram that allows Ukash customers to send domestic and international money transfers from its website and receive the funds at MoneyGram locations.