Card payments to overtake cash within 10 years
Card payments are expected to overtake cash in the next decade as a result of a continuing shift in the way consumers spend their money, recent findings indicate.According to data from the Payments Council, the number of transactions using cash is expected to decline from 21 billion in 2012 to 14 billion in 2022. The same source shows that the use of consumer cards is set to rise from 10 billion in 2012 to 17 billion in 2022, driven mostly by the increasing use of e-commerce as well as contactless cards at shop counters.
Results point out that mobile payments are also expected to increase with the introduction of new technology to make account-to-account transfers using only a phone number and the use of mobile device applications to replace card usage.
However, the staying power of supposedly obsolete forms of payment is illustrated by the use of the cheque, with reports of its demise apparently proving exaggerated. Cheques are forecast to be used in 341 million transactions in 2022, including 186 million by consumers.
Research also unveils that direct debit use is forecast to grow by 20 percent to around 3.7 billion payments in 2022. One-off payments from accounts, driven by the use of mobile and internet banking, are expected to grow from 356 million to around 1.5 billion.
According to statistics, almost 40 million people bought goods or services online last year, mainly using cards, with the number expected to increase over the decade.