The shift from cash to cards has been steadily going on for years, but there are expectations that this trend will ramp up even more in the years to come. Largely helped by the uptake of contactless payments – something that could become even more commonplace with the limit increasing to £30 next week – many people see it as the payment method of the future, so the question is, will you still be using cash in 10 years' time?
Perhaps – but probably not as much as you do now. Research from Lloyds Bank has found that a large number of people believe they won't need cash in the future, with 43% agreeing that contactless payments are the way forward, while 25% think that cash will be outdated in as little as five years. Recent figures from the UK Cards Association suggest that this may well be the case: credit and debit cards were used for 1.1bn transactions in May, up 10% in a single year, with this growth largely expected to continue.
However, in all likelihood, people will probably be using a combination of cards and cash in the years to come, with cash not being dead just yet. The research shows that 63% of respondents think they'll still be using debit and credit cards for day-to-day payments by 2025, while 52% think they'll also be using cash, and 48% think that they'll be using contactless payments on a daily basis in the next decade.
Not only that, but the rapidly changing world of technology means that a further 27% think they'll make payments using wearable tech such as watches or wrist bands, 22% think they will be regularly using their fingerprint, and 7% even think they'll make payments using a microchip embedded in their body by 2025. The launch of Apple Pay has undoubtedly had an impact, too, with 34% expecting to use a mobile device as a day-to-day method of payment in the next five years.
"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."
If you're already turning to plastic as your payment method of choice, make sure you're using the right one! Find the right current account to suit your needs (ideally one that offers contactless payments if you're that way inclined), or if you use credit to manage your finances, why not use a cashback credit card? This could be a great way to get something back from your everyday spending, and as long as you pay off the balance each month, you won't need to worry about interest negating the benefits.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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