In 2017, debit cards overtook cash as the number one retail payment method in the UK, aided by the rise of contactless technology. Being able to tap and go makes contactless more convenient than either cash or chip & pin payments, and with phone payment now available you don’t even need to get your wallet out!
At the current rate of decline, the British Retail Consortium predicts that cash use would end in 2026, which feels extremely soon! However, as the shift to a cashless society is a big step, it is likely that we will see cash being used for the next 15-20 years, albeit accounting for a much smaller percentage of transactions.
For businesses, particularly retailers, a cashless society has many advantages, not least ending the possibility of their day’s takings being stolen! Plus they will be able to forgo that annoying trip to the bank to pay in thousands of 2ps!
Businesses operating in rural areas may be at a disadvantage under a cashless system, unless connectivity improves so that cashless payment systems can be used in even the most remote of locations. The increased reliance on technology is also something that businesses everywhere should be aware of, planning for the risk of a system going down, and mitigating for the loss of income as a result.
While some people (particularly survivalists worried about an apocalypse) will want to cling to coins and notes, it seems inevitable that the UK will move relentlessly forward towards a cashless society. After all, Her Majesty the Queen has been operating cashless for decades!
For advice on moving away from cash payments, contact a member of our team.