Latest prediction reveals that cash transactions in the UK will fall drastically within a span of ten years. According to the latest report, one in ten transactions will be carried out with notes and coins.
This situation has changed from earlier situations where six out of ten transactions took place with the exchange of cash. The research draws attention to the change that has been the result of preference to debit cards. The popularity of plastic cards over cash was driven by the use of contactless technology.
A banking trade body in the UK finance also confirms that cash will play a less important role in the future. The latest research in the subject of cash transactions showed that although cash dealings were common, the practice was declining, with 16% less from 2017 to 2018, while the popularity of debit cards rose.
Moreover, the study observed that although contactless payments were most popular among young adults than in older customers, in earlier times some of the biggest rises in contactless payments was observed among pensioners.
Contactless technology became a major hit when it was adopted by the London Underground a few years ago. Later the concept was taken up by other regions, which either caught up with or was overtaken by London. This development increased the number of adults that made contactless payments.
A low prevalence of cashless transactions is observed in North West England and Lake District which was the result of an aging population that preferred cash and also lack of connectivity resulted in lower popularity of cashless transactions.
The new study confirms that debit cards are used more commonly than any other forms of payment, although cash dealings are prevalent on a decline, they are far from dead.