The death of cash: 40pc say they will not need it by 2025

Author

Tim Wallace

August 28, 2015

Cards and the rise of contactless payments mean one-quarter of Brits think they will be able to do without notes and coins within five years

Cash is on the way out as growing numbers of Britons believe contactless cards and mobile payments will be the dominant means of purchasing goods and services in the near future.

Only half of Brits believe cash will still be in day-to-day use in a decade’s time, while 48pc believe they will use contactless payments every day by 2025, according to the survey from Lloyds Bank.

A total 39pc say they don’t expect they’ll need to use cash at all a decade from now.

More futuristic technology is also highly anticipated. More than a quarter expect to be able to make payments with watches, wristbands or other wearable technology, and 22pc think they will regularly use their fingerprints to make payments .

The study even found that 7pc of Britons expect to use a microchip embedded in their body to make regular purchases.

The report comes ahead of an increase in the cap on contactless payments, which is currently set at £20. This is due to rise to £30 next month.

Meanwhile, Barclaycard has reported that contactless transactions more than doubled over the past 12 months, as the technology is increasingly being used for everyday transactions

The firm said that 29pc of transactions in supermarkets are paid for via contactless system, while 20pc of restaurant payments are contactless.

London is leading the way in contactless payments, in part because customers can use the technology on buses, trains and the Underground network. According to Barclaycard, 40pc of eligible transactions in the capital are paid for with contactless technology.

Other technological advancements are also in the pipeline to shake up the way customers pay for goods, and how they transfer money.

A pilot scheme at Barclays already lets customers pay in cheques from other Barclays customers by taking a photo on their mobile phone. Lloyds is testing out a similar system .

After July next year, it should be possible for customers of all major banks to pay in cheques from any other lender with their smartphone apps.

Several new banks also plan to use technology to change the way customers bank. Atom Bank and Starling are both planning to launch as online or mobile-only banks, rather than setting up bricks and mortar branches.

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This article was written by Tim Wallace from The Daily Telegraph and was legally licensed through the NewsCred publisher network.


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