Cash forecast to account for just 7% of UK in-store sales by 2024
Payment processor Worldpay forecast that cash would account for just 7% of UK in-store sales by 2024.
The study found that the share of cash in UK in-store sales fell from 27% in 2019 to 13% in 2020 as the pandemic changed consumer preferences. Across the other countries surveyed, cash use fell by 10% in 2020 to around one fifth of transactions.
Worldpay predicted that several European countries, including Denmark, Norway and Sweden, would become almost cashless by 2024. Card and mobile payments were expected to increase, with mobile payment methods accounting for one third of sales payments by 2024.
Worldpay EMEA general manager Pete Wickes said the research demonstrated the speed and scale of changes in consumer behaviour over just 12 months. While this created opportunities for businesses to improve efficiency, the transition required care: restaurant tips, charitable donations and other important parts of the economy still relied on cash, and some people did not use banking and digital payment systems. He called for fintech companies and regulators to work together on solutions and use technology to improve financial inclusion.
Gareth Shaw, head of money content at Which?, warned that a poorly managed move away from cash could put many people at risk if they were unable or unprepared to use alternative payment methods.
Mongolian Fintech Association