Claims by credit card companies that cash is in decline are simply not true, it has been reported.

Richard Dodd of the British Retail Consortium (BRC) explained that cash is "actually extremely widely used".

Figures from the BRC show that cash makes up 60 per cent of all transactions and accounts for 34 per cent of all retail spending.

This is up from 54 per cent of transactions and 32 per cent of spending during 2007, it found.

Mr Dodd claimed that this trend is not likely to change in the near future as budget pressures and cash-strapped consumers lead to an increasing preference for cash.

However, the long-term outlook does not point to a decline in cards, he said, as technology is being advanced so they can be used for lower-value transactions.

The increase in cash usage is simply a "blip" in the overall picture, he concluded, as cards are steadily advancing.

© Adfero Ltd