You are here: Home - Saving & Banking - News -

Digital and cashless payments see rapid growth

0
Written by:
06/06/2019
Digital technology is transforming the way people pay for goods and services, with consumers taking a ‘pick n mix’ approach where mobile banking, mobile payments and contactless are all becoming more popular

Research by UK Finance showed almost half (48 per cent) of UK adults used mobile banking in 2018, up from 41 per cent the previous year. At the same time, the number of bank payments made using online or mobile banking in 2018 grew to 2 billion, up from 1.6 billion in 2017. In total 39.3 billion payments were made in the UK in 2018.

Around 8.5 million people have joined the digital payments revolution, and are signed up to use mobile payment services such as Google Pay, Apple Pay and Samsung Pay, equivalent to one in six (16 per cent) of the adult population.

Debit cards overtook cash as the most frequently used payment method in 2017 and remained the most frequently used payment method in 2018, accounting for nearly 40 per cent of all payments. Almost the entire adult UK population (98 per cent) now own a debit card. Contactless payments rose to 7.4 billion payments in 2018, an increase of 31 per cent on the previous year.

Adoption is not just confined to younger people: older customers are increasingly embracing the convenience of this technology, with over three-fifths (61 per cent) of over-65s making contactless payments in 2018. Cash was used for 28 per cent of payments in 2018 and is forecast to still be used for one in ten payments in a decade’s time.

Stephen Jones, chief executive of UK Finance, said: “More and more customers are now opting for the speed and convenience of paying with their contactless cards, or using mobile banking to check their balances and make transfers while on the move. This rapid rate of technological change is set to continue over the coming decade, as people embrace the ever-widening number of ways to pay and manage their finances, depending on their needs and lifestyle.

“However, technology is not for everyone and cash remains a payment method that is valued and preferred by many, so maintaining access to cash will be vital to ensure no customer is left behind.”

Peter Janes, CEO and founder of Shieldpay, said: “Fraudsters will be rubbing their hands together with glee at the prospect of an increasingly cashless society. Money moving digitally, without adequate protections in place, means more chances for fraudsters to get their hands on people’s money.  

“As banks further integrate themselves into our everyday lives and support the shift to a cashless society it’s paramount that greater protections are put in place. Levels of fraud are at all-time high but there are solutions already available that stop fraudsters in their tracks.” 

Related Posts

Tagged:

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week