New research conducted by Lloyds Bank, shows that a quarter of Brits believe they will be living without notes and coins within five years.
The study shows that growing numbers of British people think that contactless cards and mobile payments will be the main method of purchasing good and services in the future and 48 per cent believe they will be using these methods to pay everyday by 2025.
According to the Lloyds survey, in ten years 39 per cent of people do not think they will need to use cash and more than a quarter expect to be able to payments via watches and other wearable devices, while 22 per cent believe they will be paying for goods using their fingerprints.
MasterCard is already noticing an increase in the amount of people using contactless payments and report a rise of 560 per cent in the total value of contactless payments over the last 12 months. “The pace of growth we are seeing in contactless is getting ever faster as we rely less and less on cash,” said MasterCard’s UK & Ireland president Mark Barnett.
Barclaycard has also reported a rise in the number of contactless transactions last year, noting that payments using contactless have doubled in the last 12 months. Reports suggest that London is leading the way in contactless payments, due to people in the capital also being able to pay contactless on London transport, and Barclaycard reports that 40 per cent of transactions are being paid for with contactless technology.
Speaking about the research, City AM reports that Claire Garrod, head of personal accounts at Lloyds bank said: “Whether it’s contactless, wearable tech or fingerprint ID, people are increasingly expecting to use new technologies to make payments rather than rely on cash. The benefits of these new developments are gradually being understood and embraced by banks and their customers, to make payments more convenient without compromising security.”
New mobile payment solutions in the form of Apple Pay and soon to be launched Android Pay are also give consumers new ways to pay without using cash, with the added benefit of not being restricted by the £30 spend cap which comes into force for contactless payment cards next month.