Major telecoms companies could be losing over £165 million in revenue every month by failing to offer customers the option to pay in cash, reveals new research from the Post Office.
Almost six million UK households use cash or cheques to pay their bills, either through choice or lack of access to banking services. But many major telecoms companies – such as those offering combined broadband internet, telephone and digital TV packages – are excluding these people by limiting payment to direct debit only.
There are 2.8 million UK adults (1.9 million households) without a bank account who rely on cash payment methods to pay their bills. A further six million people with bank accounts (four million households) actually prefer to choose cash over direct debit when paying their bills. Combined, these people represent 14.6 per cent of the UK population.
Doing the maths the Post Office says that with an average monthly telecom and entertainment package subscription costing £28 per month, this equates to a potential £165.2 million in lost sales per month for businesses who fail to accept cash or cheques.
Post Office marketing director Gary Hockey-Morley said: “Failing to offer a cash payment channel means that businesses are restricting the size of their potential market, with some telecoms companies ignoring customers worth over £165 million per month.
“With 14,000 branches across the UK, and 99 per cent of people living within three miles of a branch, the Post Office offers an easy route to bill payment services for people who choose to pay their bills in cash and can also ensure that companies are socially inclusive in offering their services to people without bank accounts.”