28th August 2015
Four in 10 people believe they will no longer need to carry cash in the future as contactless payment will be increasingly widespread.
Research by Lloyds shows 43% of people think contactless payment is the payment method of the future and within the next five years, 34% of people believe they will be using a mobile device on a day-to-day basis to make payments.
By 2025, one in five people think they will be regularly using their fingerprint to pay for goods and services.
One in four people think that cash will no longer be needed to pay for goods and services in five years’ time. However, half of those aged 55 to 75 believe they will always need some cash compared to 40% of 18 to 54-year-olds.
Shoppers used credit and debit cards for 1.1 billion transactions in May, up 10% in a year, as the rise of contactless payments increasingly replace the use of cash in low value transactions.
The research by Lloyds shows that the majority of people, 63%, think that they will still be using credit and debit cards for payments in 2025 and 52% believe cash will be used for day-to-day payments. Another 48% believe contactless payment will be used on a daily basis in the next decade.
In addition, 27% of people think wearable technology, such as a watches and wristbands, will be used to make payments in 10 years time and one in five think they will use their fingerprint.
Some people, 7%, also think a micro-chip could be embedded in their body to allow them to make payments.
‘Whether it is contactless, wearable tech, or fingerprint ID, people are increasingly expecting to use new technologies to make payments rather than rely on cash,’ said Claire Garrod, head of personal current accounts at Lloyds Bank.
‘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.