Contactless payments could replace cash in the UK within the next decade

Coins in a purse or wallet may become a thing of the past, according to a new Ingenico Group survey.

The study, carried out by Ingenico Group, found that 71 percent of industry professionals said cash would become obsolete in the next decade.

The report, “ Chip and PIN – 10 years on”, also found that 87% of the professionals surveyed also believe Chip and PIN has reduced the amount of fraud at point of sale. This is backed-up by figures which reveal that since Chip and PIN was introduced in 2004, annual counterfeit card losses are down from £129.7m to £47.8m in 2014.

In a second online survey of over 2,000 UK adults, as part of the same study, commissioned by Ingenico Northern Europe in conjunction with YouGov, it was found that nearly half, 43%, of UK consumers think it is likely that card payments will have completely replaced cash in 10 years’ time.

According to trade body the UK Cards Association, £7.75bn was spent using contactless cards in 2015, more than triple the amount of £2.32bn the previous year. The increase in the contactless spending limit from £20 to £30 is also proving popular according to Visa who very recently reported that payments in this band now account for more than 10% of all face-to-face card transactions.