According to the trade association Payments UK, the average adult in the UK will only make cash purchases twice in every three days by 2024. They went on to claim that the typical person will only write two cheques a year by the same date.
They are also predicting a rise in debit card payments that will lead to them becoming the most common form of payment, with cash and direct debits following close behind.
It points to the rise in contactless payments being one of the biggest factors in the decline of cash payments- most new debit cards can make these payments as can many new models of smartphone. This prediction is supported by the fact that non-cash payments have recently become more commonly used by both shoppers and businesses.
Their research goes on to suggest that consumers will make more payments with non-cash methods than with notes or coins in the year 2016.
Payments UK also believe that people will begin purchasing products such as lottery tickets and groceries online as opposed to using cash. Contactless payments will also make it more likely that small value transactions will now be cash-free.
According to its findings, the average UK adult will make around 225 cash purchases by 2024, down from 345 in 2014. There will also be a rise in debit card payments in the same timeframe, going up to 282 from 172 last year.
The Financial Inclusion Commission will not be pleased with the report as there are already worries that those without bank accounts are being steadily excluded from the financial “mains”.