When it comes to changes in the way the British public pay for their purchases, things have gone so quickly over the last decade that it’s almost possible to wonder how we functioned without mobile payments!
2017 marked the 10th anniversary of contactless cards being introduced in the UK, but with the way contactless payments are now intrinsically linked with our day-to-day lives (for example, along with Oyster cards they’re now the default payment method for transport in London) it’s hard to imagine a world without them.
Back in 2014, debit card transactions accounted for only 24% of payments, a figure which has shot up over the last three years. Cash was also used almost exclusively in venues like clubs and pubs, and in small stores like newsagents, with 8/10 payments being made with old-fashioned coins and notes.
Plenty of Change
In 2015, cash was officially overtaken as 52% of transactions were electronic, but the amount of people paying with cash is expected to fall a further 30% beyond that figure by 2025. This is arguably unsurprising because card payments offer less hassle and far more security than carrying around large amounts of cash.
When contactless payments were first introduced, there were a lot of security concerns. Whilst there are risks which come with touch and go payment, this isn’t in any way disproportionate to the increase in the overall use of contactless cards.
In fact, Financial Fraud Action UK estimated in 2016 that the fraud figures were 2.7p for every £1 spent, which is actually down from the previous year when it was 3.6p for every £1 spent.
Shoppers, it seems, are becoming increasingly savvy about how to safely carry out electronic payments and keep their cards safe.
It will be interesting to see the ways in which card payments continue to evolve, with more recent developments such as Apple pay or easy contactless payment through other devices now available. Some companies are even looking into the incorporation of biometrics for all payment methods, including fingerprint and retina checks.
What will the next 10 years hold for the transaction revolution? We look forward to finding out!