Cash could become obsolete within the next decade say 71% of industry professionals with 16% of those predicting the move from cash to card payments will happen sooner, according to results of a new survey, Chip and PIN – 10 years on, conducted by Ingenico Group, the global leader in seamless payments.
Additionally, 87% of the professionals surveyed also believe Chip and PIN has reduced the amount of fraud at point of sale. This is backed-up by figures which reveal that since Chip and PIN was introduced in 2004, annual counterfeit card losses are down from £129.7m to £47.8m in 2014.
In a second online survey of over 2,000 UK adults, as part of the same study, commissioned by Ingenico Northern Europe in conjunction with YouGov, it was found that 43% of UK consumers think it is likely that card payments will have completely replaced cash in 10 years’ time.
These findings suggest strong consumer support for contactless payments and how mainstream they have become in the UK. Trade body, the UK Cards Association, announced that £7.75bn was spent using contactless cards in 2015, more than triple the amount of £2.32bn the previous year. The increase in the contactless spending limit from £20 to £30 is also proving popular according to Visa who very recently reported that payments in this band now account for more than 10% of all face-to-face card transactions.
Ingenico UK Managing Director, Ian Benn, commented that the two surveys reflect the changing payment landscape as the industry continues to drive new methods of payment in order to satisfy consumer convenience. “The way we pay is changing fast, whether in shops or online and we were keen to map consumer views with those of the wider industry. Whilst the experts are more definitive, there is a strong consensus. It is clear that the payments sector needs to continue in its efforts to grow consumer confidence in the security of contactless payments.”