Nearly 60% of Brits think cash will be obsolete at some point in the near future. 12% think it’s likely to happen in the next 5 years, and 4% think paying by cash will be out of date within 2 years.
When we look at how rarely cash is used in Sweden, it’s easy to see why people think Britain won’t be far behind. The Swedish central bank, Riksbank, say less than 1% of all payments processed in 2017 were cash based, and they predict it will drop to 0.5% of payments by 2020. According to a BBC report on the topic, it’s pretty common to see ‘We don’t accept cash’ signs in shop windows in Stockholm.
The Stats You Need to Know
According to Lloyds Bank, cash was “still the UK’s most popular way to pay in 2016” but this is likely to change quite soon. In 2016, “card transactions in the UK increased by 10% to 19 billion”. Digital sales are predicted to make up “22.6% of UK retail revenue by 2020”, and “£288 million was spent through mobile contactless payments in the UK in 2016”.
The UK ranks in third place in the world’s most cashless countries, behind Canada and Sweden, but we still have the largest portion of contactless cards compared to traditional debit and credit cards. 26% of Canadians have contactless cards, while 41% of British people can tap to pay.
More Alternatives to Cash Than Ever
The increasing popularity of biometrics, wearable devices, mobile payments, and contactless, have made paying with a card far simpler than rooting around for change and notes.
It’s been reported that mobile and wearable payments are going to reach a value of $100 billion this year. Samsung, Apple, LG, and traditional watchmakers like Tag Heuer, have released smart watches with contactless capability. More affordable options include payment bands designed to look like bracelets, like the Topshop x bPay band.
Some Businesses Are Moving Away From Cash
Many businesses are embracing an ‘omnichannel’ way of accepting payments – physically in bricks and mortar shops, as well as through mobile channels and contactless. The more ways their customers can pay, the better.
Lloyds have highlighted that shoppers are increasingly interested in checking inventory through in-store screens and tablets, using ‘click and collect’ wherever they can, and receiving tailored offers built around their past purchases. Omnichannel shoppers apparently spend around 4% more on each visit to a store, and 10% more online.
If your business takes card payments, you could qualify for between £3,500 and OVER £150,000 with the Merchant Cash Advance from Capify. Repayments will be taken in small percentages every time your business takes a card payment, so you can always afford it.
Find out how much you could raise for your business today.