More than a tenth of young adults in the UK opt for cards or digital payments as opposed to cash for their day-to-day spending.
According to UK Finance, 2.9m people rarely used cash overall, representing six per cent of the UK’s adult population. Consumers between the ages of 25 and 34 are most likely to be infrequent cash users, with 11 per cent having no more than one cash payment each month. This figure falls to just two per cent for the 55-64 age group.
UK Finance predicts that the number of cash payments will fall by 43 per cent to 8.7bn by 2026, with the total value expected to fall by 23 per cent from £240bn in 2016 to £185bn over the next decade.
“It is clear that over the past few years we have witnessed a significant shift away from cash use in this country with contactless cards undoubtedly causing a decrease in the use of notes and coins,” said Adrian Buckle, chief economist at UK Finance.
“However, we don’t believe that the UK is on the verge of becoming cashless, as some reports have claimed. People will always want to choose the payment methods that best suit them and, for the foreseeable future, in lots of cases that will continue to be cash.”
Source: Mobile Marketing Magazine