It has been reported that consumers are using their contactless cards more, having overtaken the use of coins and notes.
Figures by the Payments Council have shown that cash being used by businesses, consumers and financial organisations has dropped to 48% and the other 52% is electronic transactions. It has also been reported that cash transactions will decrease by 30% over the next 10 years. Despite the increase of contactless payments, 18 billion cash payments went through in 2014 amounting to £250 billion, mainly in places such as clubs, newsagents and pubs.
The prediction made by The Payments Council is that by 2016 the most common way for consumers to pay will be cashless.
The future of coins and notes isn’t over though as coming into circulation in 2017 will be a new 12-sided £1 coin and the Bank of England will be introducing plastic £5 and £10 notes in 2016 and 2017.
