A new survey from Lloyds Bank suggests that British consumers are increasingly using electronic payments and that nearly half of respondents believe they will no longer need cash in 20 years. The survey which asked 2,000 respondents also shows that 43% of consumers believe that contactless technology is the payment technology of the future and this will have a dramatic impact on the use of cash.
One of the main focus areas of the survey was mobile payments and consumer perceptions around mobile payments after the launch of Apple Pay in the UK in July. According to the survey, over a third of respondents expect to be using a mobile device as a day-to-day method of payment in the next five years but importantly nearly half of those questioned said mobile will never be a main method for payments. When asked why they don’t currently use mobile to make payments today, 44% of respondents say they do not think it is secure or safe, while 18% said they don’t have the right phone, and 17% said they don’t know anything about mobile payments.
The survey from Lloyds Bank highlights the significant changes in the UK payments market. Cash remains a popular payment type with slightly more than 50% of consumers still envisioning cash use two decades from now. While cash will stubbornly carry on, consumers perceive card use and especially contactless card use to be a major payment type with enthusiasm for mobile payments limited. Of course time can change these perceptions but it is clear contactless payment technology is going to have a significant impact on the future of the UK payments market.
Overview by Tristan Hugo-Webb, Associate Director, Global Payments Advisory Service at Mercator Advisory Group
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