DEBATE: Will the UK go completely cashless in 10 years?
Digital payment is on the rise, but will the UK go completely cashless in 10 years?
Vlad Yatsenko, chief technology officer and co-founder of Revolut, says YES.
I believe that it will be possible for the UK to be completely cashless within the next 10 years – if we want to be.
If the UK aspires to be fully cashless, we need to continue to innovate and encourage the use of financial technology across the country, not just in our cities. Ideas such as banning cash on transport have now been in force for several years, while a growing number of vendors accept card and mobile payments, so we are well on our way.
Businesses and financial institutions will have to adapt quickly as we move towards a cashless society. UK infrastructure lags behind countries like Sweden, and our large population isnt an ideal test-bed for cashless innovation. But innovative new companies are making it increasingly easier for customers to make secure, cashless payments – and the fall in cash usage shows consumers are onboard.
Weve still got a long way to go until everyone fully adopts cashless technology, but we are certainly heading towards becoming completely cashless in 10 years.
Read more: The End of Cash? Beware sleepwalking into a world without hard currency
Nikki Worden, partner and specialist in financial services at Osborne Clarke, says NO.
It is true that card payments overtook cash for the first time in early 2017, partly driven by the rise in online shopping, and partly by increased usage of smart mobile technologies.
However, becoming a cashless society within 10 years remains unlikely. While financial fraud overall is not growing, payments fraud involving deception crimes, online attacks, and compromised cards is up over 20 per cent. Research has shown that, when it comes to going cashless, consumers are increasingly concerned about fraud, security breaches, and the risks of sharing more personal data.
Over the next 18 months, we will see increased data protections standards implemented under the GDPR, and new rules requiring more secure customer authentication under PSD2. These will go some way towards helping build consumer trust, but will not defeat fraud on their own.
Many consumers (not least older people, who are less likely to shop online anyway) will continue to prefer cash for many years to come.
Read more: DEBATE: Is it time to scrap 1p and 2p coins?
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