Phone payments to overtake cash and kill off cards, say young people
As the recently launched iPhone X makes mobile payments even easier with Face ID, MoneySuperMarket
reveals that a quarter (23%) of Generation Z predicts physical cards will soon be obsolete as mobile payments reign supreme.
The new report
by the price comparison website shows that contactless payments have doubled since last year, as we increasingly lose contact with cash – with 75% of people withdrawing less cash today than they did 12 months ago.
The number of contactless payments has doubled in one year alone, now making up 30%2 of the nation’s purchases compared to just 16% a year ago, as card transactions soar to a record 1.4 billion yearly.
The study also reveals that Brits now make 20% more payments with card or contactless devices (1.8 times) than with cash (1.5 times) every day, showing that mobile and contactless payments are rapidly overtaking coin and paper money as our preferred way to pay.
The report shows that a quarter of Generation Z (those aged 18-24) expect mobile payments to overtake other payment methods, four times more than the over 55s (6%).
Younger people are also more likely to lose count of how many contactless payments they make, with 15% of 18-24 year olds admitting they can lose track of contactless spending, compared to just 2% of the over 55s.The demise of cash
According to MoneySuperMarket’s research, more than half of Brits (53%) would react positively to the UK becoming increasingly cashless, suggesting they’d be happy with the change.
With the huge growth in popularity of alternative payment methods such as mobile wallets (Apple Pay and Android Pay) and contactless cards, it’s not surprising that over a third of Brits have already adopted the cashless life, using these alternative methods whenever possible.
The future generation is spearheading the change, with nearly a quarter (23%) of 18-24 year olds predicting that we will eventually pay for everything with our phones, rendering physical cards obsolete, as opposed to just 6% of the over 55s.
However, just over a quarter of Brits said they would disapprove of a move towards a cashless society, citing the preference to use cash “on occasion”. Even for those who approve of the move, a small proportion (17%) admitted they’d also miss paper notes.Withdrawing cash
Only 6% of those surveyed claimed to have withdrawn cash to counter their concerns around card security, compared to 38% of Brits who reported withdrawing cash for no specific purpose other than to have it on them to pay for small ticket items. The latter response could perhaps be attributed to age; over half of the over 55s regularly withdraw cash, in contrast to less than a quarter of 25-34 year olds.
Looking at the statistics regionally, Scots are most likely to withdraw money regularly (45%). The South East, on the other hand, is the least likely to do so, instead preferring to use alternative payment methods (29%).
Regardless of what type of spender you are, it’s important to make sure you have the right card that matches your buying profile. MoneySuperMarket’s website offers guidance on finding cards that pay interest and offer benefits and rewards packages, meaning you can take advantage of certain product benefits if you’re using the card regularly. This also applies in the credit cards space, where consumers can use the Smart Search facility to compare the best 0% purchase credit cards, without it harming their credit score.