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Over half (55%) of UK consumers expect to stop using cash for shopping within two years, according to a new research by Paysafe. The report states that only 34% of Britons visit an ATM even once a month, and one in six say they rarely carry cash at all, with that figure rising to one in five for under 34s. It also shows that 65% of respondents are carrying less cash than they were a year ago.

The results of this study, unsurprisingly, point towards an increasing reliance in cashless payment methods in the UK, US and Canada. It also reveals that consumers’ trust in cryptocurrencies is improving, and that digital payment methods will be paramount for retailers.

The study also shows that 24% of respondents have already adopted mobile wallets, and 12% use cryptocurrencies for payments. Three out of five consumers regularly pay with contactless, and 69% believe it’s more convenient than cash. The importance of contactless in the UK cannot be disregarded, as 44% said they preferred to shop in places that take contactless – too few, if you ask me. Contactless is facilitating the use of emerging digital channels, like e-wallets and smartphone apps.

Security for contactless, however, has become a major concern for 68%, and 58% of respondents who are concerned they will be charged the wrong price when using it. Phone theft (29%) also represented a big concern, similar to the apprehension of taking out their mobile phone (28%). This is despite nearly two thirds (63%) saying they are increasingly confident about using their mobile phone for shopping.

Across the pond

Compared to the US and Canada, where people rarely carry over $50 in their wallets, in the UK that number is just £20. Mobile wallets are differently in each country, 24% in the UK, 31% in the US and only 16% in Canada. Similarly, the use of cryptocurrencies in each respective country is 12%, 14%, and 9%. Dual-browsing (using mobile to browse and buy while in a shop) numbers are pretty high too, with 41% in the UK and Canada, and 55% in the US.

Out of those using mobile wallets in UK, US, and Canada, the percentage of people paying for higher priced items with them ranges from 77% to 82% – very high numbers. Between 81% and 87% think that mobile payments are more convenient than cash, and between 77% and 83% that it’s more convenient than contactless.

“There was much fanfare earlier this year around the 50th anniversary of the ATM, but the much more relevant milestone for payments today is the 10 years since the introduction of contactless payments in the UK. Although slow to establish itself, contactless is changing the landscape in how the public views cash and began its evolution into digital formats,” said Oscar Nieboer, chief marketing officer at Paysafe.

“Today, we are seeing the emergence of a cash-free society – people have more ways than ever to spend cash online or offline, and this challenges businesses to reimagine the shopping experience to allow for behaviours and payment models unthinkable a decade ago. They need to look at the next wave of disruption in payment and get ahead of the curve with younger demographics by introducing new payment approaches.”

 

by Henry Vilar
Henry is Junior Reporter at IBS Intelligence, follow him on Twitter or contact him at: henryv@ibsintelligence.com
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