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BizReport : Trends & Ideas archives : April 26, 2016

Brits believe cash will be a thing of the past in five years

Cash will soon become relegated to the annals of history in the UK, according to new research from media agency Starcom..

by Helen Leggatt

In their survey of 1,500 people in the UK, Starcom found that almost three-quarters of the population of the UK expect cash to have gone out of fashion in five years' time. The idea of a cashless society appears to be a more comfortable prospect for men (52%) than women (39%) and those under the age of 35 are more relaxed about the idea (67%) compared to those over the age of 55 (50%).

But, it seems, the fate of cash will be a gradual affair. Most survey respondents think that the one pence coin will be the first to disappear, followed by the 2 pence coin and the fifty-pound note.

However, while the use of contactless payment methods and the disappearance of cash might be inevitable, concerns about control of personal finances and security persist. Nearly half (49%) of respondents believe moving to contactless payments would mean increased risk of losing control of personal finance and more than half (57%) believe fintech to be less secure than cold, hard cash.

"Whilst there are many positives to a world without physical cash, issues around security and control are quite naturally front of mind for many of us. Unsurprisingly, in terms of age, Millenials will most easily adapt," said Pippa Glucklich, co-CEO of Starcom.

"All brands and businesses need to think about how they engage, inform and guide consumers through this transitional journey. Those at the forefront of embracing the technology on offer to make this transition will clearly have the edge," she added.

Earlier this year, Visa reported that the number of people purchasing items using contactless payment methods in the UK now accounts for 1-in-7 face-to-face Visa transactions, up from just 1-in-25 a year ago. That's a significant rise of 250%, demonstrating the populations' increasing comfort levels with the payment method.

In fact, more payments in the U.K. were made electronically than with cash for the first time last year.

Visa UK and Ireland managing director Kevin Jenkins believes that, in the U.K., contactless payments have become the "new normal".

Tags: contactless payments, finance, payment method trends, trends, UK

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