Consumers look to new payment technologies
Almost 4 in 10 current account holders think the rise of technology will eliminate the need to use cash in 10 years’ time, research by Lloyds Bank suggests.
A survey of 2,000 Lloyds Bank account holders found that many expect technology such as contactless cards, mobile apps and biometrics to replace cash as a means of exchange.
The poll revealed:
- 43% think contactless payments will become more common
- 34% expect to use their mobile phone for daily payments in 5 years’ time
- 27% predict wearable technology such as watches will be used to make payments
- 22% think fingerprint biometrics will be used for banking by 2025.
Despite this, the majority of respondents still expect conventional payment methods to exist in 2025. Almost two thirds (63%) think they will still be using credit and debit cards while 52% expect cash to be a valid form of payment.
The use of cash continued to decline in the past year. The UK Cards Association published research in July that showed debit and credit cards were used for 1.1 billion transactions in May 2015 – up 10% year-on-year.
Claire Garrod, head of personal current accounts at Lloyds Bank, said:
“Whether it is contactless, wearable tech, or fingerprint ID, people are increasingly expecting to use new technologies to make payments rather than rely on cash. The benefits of these new developments are gradually being understood and embraced by banks and their customers, to make payments more convenient without compromising security.”
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