Half of people in the United Kingdom (47%) carry significantly less than £5 (US$6.10) in money as banks and retailers make it easier for “touch and pay” technology as well as the increase in online shopping. 43% percent said they carry less money than they did a couple of years ago. Only 7% said they carry more than £50 in cash.
“We’re in the midst of a period of unprecedented change for payments,” said Mark Barnett, President of Mastercard UK and Ireland. “Cash usage is being buffeted by the dual forces of increased online expenditure and consumers embracing the convenience, speed and security of card and digital payments. The decline of cash has also been driven by wearable technology and mobile payment technology.
The percentage of individuals in Europe who frequently use a mobile device to make daily purchases has tripled, based on Visa’s current ‘2016 Digital Payments Study’. Over fifty percent of customers currently use mobile devices to pay for many things, up from 18% last year.
“This data is a confirmation that the future of digital payments has arrived, with consumers across the length and breadth of the UK and Europe embracing a variety of new ways to pay,” said Kevin Jenkins, Visa’s UK and Ireland managing director.
As well as cash becoming a thing of the past, Mastercard’s survey found that one in five people believe wallets and purses might also soon be obsolete, rising to a third of those between the ages of 25 to 34. In fact, 10% said they have already ceased to carry a wallet or purse, preferring instead to keep their credit or debit card in a pocket and 24% said they would likely do the same in the future.
In addition to money being a factor of the past, Mastercard’s study discovered that one in five people think bags and purses may also be useless in the near future, increasing to a third of those between ages of 25 to 34. Actually, 10% said they’ve already stopped carrying a purse or wallet, choosing instead to keep their credit or bank card in their pocket, and 24% said they’d probably do exactly the same later in the future.