Cash consumption is decreasing year by year, it is predicted that less than one out of every 10 transaction will be made by cash, either bank notes or coin in 10 years’ time.
Cash was used for six out of ten payments a few years ago, but it has become increasingly popular due to the use of contactless debit card technologies. The most recent figures show cash payments are still common, but have decline to 16% from 2017 to 2018, while debit card use is rising.
A review of payments released by the UK banking trade organization UK Finance revealed that ‘cash was here to stay, but would play a less important role in the future.’
Total UK contactless spending increased by nearly £69 billion. Tap and pay now accounting contributes more than 40% of all card transactions. Out of 159 million, around 123 million debit and credit cards incorporate the technology. Large adoption is seen in public transport segment, where cards are being heavily used with 7.4 billion contactless transactions in 2018, which is about 31% rise in 2017. While debit still dominates, the number of contactless credit card payments is growing at a faster rate, up to 44% high from the previous year.
Contactless payments on debit cards used to be mainly used by young adults, but older consumers have adopted the technology, with some of the biggest increases seen in the last year. The use of contactless payments has been massively improved a few years ago when it was adopted by the London underground. However, other regions in London have caught up with or overtaken the share of non-contact adults. Theories of lesser prevalence in northwestern England include an aging population in coastal cities holding on to cash and lack of digital access due to lack of connectivity in areas such as the Lake District.
Overall estimates state that debit cards are used more than any other form of payments in our monthly outgoings, but cash is far from dead.