Digital Payments Overtake Cash

Digital payments overtook the use of notes and coins for the first time earlier in the UK in the first half of 2015.

  • 6 million consumers predominantly used cash. Nearly 40% of those who depended on cash were aged 65 or older
  • 3 million consumers rarely use cash, while half of those who used it infrequently were aged under 35.
  • A quarter of all cash payments by consumers were for a value of £1 or less, while 56% were for £5 or less.

Payments UK said it had not expected cash to be overtaken by non-cash payments until 2016, and it forecast that by 2024 it would be used for just 30% of payments.

Mobile payments are also likely to increase significantly heading in to 2015 with the introduction of Apple Pay in the UK, and mainstream banks increasingly offering apps with account-to-account transfers using only a phone number.

 

 

 

 

 

 

In July, consumer group Which? warned that data from contactless cards could be easily stolen by using inexpensive card-reading technology bought online

 

 

 

 

September 2015 saw contactless card limits increase to £30 in the UK,
in part to help cover the average supermarket spend of £25.

The Scandinavian countries lead the world in cashless payments. A staggering
four out of five purchases are now made electronically in Sweden.

 

 

 

Ajay Banga, CEO of MasterCard, has took a particular strong stance on cash, labeling it dirtiest secret of the modern economy, pointing to the facts that it’s hard to track, expensive to print, produce, and distribute; and enables illegal activities.

 

 

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