August 31 ,2015 | by Erin O’Neill

Cash may become extinct by 2025, suggests new survey

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A new survey from Lloyds Bank suggests that cash may soon become extinct as more Britons switch to alternate methods of making payments.

The increasing popularity of contactless payments and the continuing rise in debit and credit card use means that a quarter of Britons think they will not be using notes and coins within only five years.

Changing behaviours

The way we purchase goods and services has changed dramatically in the past few years, particularly in respect to online shopping.

However, day-to-day business for small items, such a takeaway coffee, is also undergoing a massive upheaval with the continuing roll out of contactless payment technologies.

The new Lloyds Bank survey has revealed that only half of the UK population believe cash will still be in day-to-day use in ten years' time, and 48% believe they will be using contactless payments every day.

New tech

Technology is expected to make even more of a dent in the way we make payments, with more than a quarter of those who took part in the survey saying they expect to be able to make payments in totally new ways using watches, wristbands and other wearable tech.

Fingerprint payments are expected by 22%, whilst the most adventurous 7% think that they'll be using a microchip embedded in their body.

Payment cap

The current £20 cap on contactless payments is due to rise to £30 next month, and gadgets such as smartwatches can already be used for contactless payments on London's transport network.

Barclays already lets customers pay in cheques from other Barclays customers by taking a photo on their mobile phone in a pilot scheme, and Lloyds is testing a similar initiative.

Erin O’Neill is an LSBF News Writer who reports on small business, careers, technology and education news.

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