Did You Know?
The UK is the 3rd most cashless society globally! The rise in easy contactless payments and e-commerce means that we are seeing a fall in cash use. Experts are predicting that in 10 years’ time less than one in ten transactions will be completed in cash.
Compared with the previous 10 years when six in ten transactions were completed in cash. It will always have a place, but if patterns continue it is likely to become increasingly unpopular among the majority. Is a cash free society viable?
While the stats appear to suggest that our love affair with cash is declining, it still has it’s own USPs;
- Unlike it’s plastic rival it does not need technology
- It is universally understood, regardless of currency – it overcomes boundaries like no card or online checkout can.
- Much like the love of reading a book over an e-format, many people still prefer the tangible aspect of cash.
Isn’t Contactless a Millennial / Gen Z fad?
Surprisingly it is not just Millennials who have adopted contactless use. Gen X and the baby boomers have all got on board with the convenience of contactless with the biggest rises in 2018-2019 seen among pensioners. Whether you are using payment apps such as apple pay, online facilities such as WorldPay or you simply love to sit on the sofa and shop online- there is a way that works for you.
A study by Retail Week Connect in association with WorldPay reveals that 63% of all UK consumers believe their phones will replace physical credit or debit cards as their main payment method within the next 5 years.
What Does The Future Hold?
UK Finance predicts that in 2028, while we will still be using cash for almost one in ten payments, debit cards will be used for over half of all payments made in the UK.
Despite the changing landscape, there are still those in society who rely on cash. Away from those who simply prefer cash use, the fact remains from cash only businesses to low income families and the homeless population – cash may be the only viable option for payments.
Watch this space to see if cash joins the Dinosaurs…
If you remain a cash intensive business, and are bogged down in bookkeeping, Avanti want to help you. Call us to see how our bookkeeping service could help you streamline your processes, increase time efficiency and improve your bottom line (08000) 388 799.