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Card payments set to overtake cash

Card payments set to overtake cash

Category: Banking

Updated: 20/08/2013
First Published: 20/08/2013

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Card payments are set to overtake cash transactions within the next decade, according to new research.

The Payments Council report forecasts that in 10 years' time card use will rise by 75%, from nearly 10 billion payments in 2012 to nearly 17 billion in 2022, while cash payments and cheque usage fall by the wayside.

The findings from its research into consumer payment behaviour revealed that the number of cash transactions will fall from 21 billion in 2012 to 14 billion in 2022.

Cheque usage is projected to continue falling – from 477 million cheques in 2012 to around 186 million in 2022.

Mobile payments and internet banking will help drive up consumer use of one-off payments from their accounts from 356 million payments in 2012 to around 1.5 billion.

Already, digital innovations have seen every high street bank launch a smartphone app allowing customers to check balances on the go as well as make payments from their mobile phones.

Through services such as Paypal people can easily send and receive money using only an email address, while the social media network Facebook announced last week its plans to allow users to pay for goods online using only their Facebook login details.

Next year the Payments Council is set to launch a new banking service that will enable consumers to make secure account to account transfers using only a mobile phone number.

"It's fascinating to see how much of the groundwork we're laying down now will work out in 2022. The next few years will be an exciting time for the payments industry," said Adrian Kemellard, Payments Council Chief Executive.

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