Cash payments predicted to decline to 7% in 2024

Just 7% of UK shop payments predicted to be in cash by 2024 according to new research by Worldpay.

The report found that cash purchases fell to 13% last year as pandemic increased the switch to cards and mobiles

The report found that by 2024 it expects tha mobile to make up a third of payments. 

While cash accounted for 27% of in-store transactions in 2019, the report predicts usage will continue to drop over the next three years.

International figures showed that in several other countries, including Sweden, Canada and Australia, already less than one in ten shop payments are made in cash.

It predicted Sweden would be ‘almost cashless’ by 2024, with 0.4% of transactions paid for with money, down from 15.2% in 2019 and 8.8% last year.

The increase in the contactless limit on cards, and mobile payment services with no cap on spending have accelerated the switch away from cash. Worldpay said that by 2024 it expected mobile to make up a third of payments.

Pete Wickes of Worldpay said “This research shows the speed and scale of the transformation in consumer behaviour in just 12 months. The decline in the use of cash in the UK has accelerated, and while this opens up new opportunities for businesses to optimise and drive efficiencies, we need to be mindful that important parts of the economy continue to rely on cash, such as charity donations and restaurant tip jars, while there are many in society who remain underbanked.”

Gareth Shaw, Which? Head of Money said “Digital payments have transformed the way many of us purchase goods and services, but if the shift away from cash is not handled carefully, there is a very serious risk that it will exclude a significant number of people who are not ready or able to take advantage of these payment methods.”

“The cash network has already been severely damaged in recent years, particularly since the start of the coronavirus outbreak, because there has been no effective oversight to ensure the millions of people who still depend on it can still withdraw it. The government must move quickly with its plans to safeguard access to cash through legislation, to ensure that the system remains viable for as long as it is needed.”