Consumers now have a wide range of options to consider when paying for goods or services and, while some might feel more comfortable using debit or credit cards, many individuals are happier knowing they have cash in their pockets (often for the smaller transactions).
Credit card companies claim that their all-new ‘contactless’ cards – which can be waved in front of a scanner to make small payments – will be the answer to this. Indeed, such technology has already been seen in action with Transport for London’s successful Oyster e-payment system.
However, an e-payment system designed to replace cash involves the consumer having a strong level of confidence in the scheme. Last year, a comprehensive survey conducted by market analyst YouGov showed that 70% of consumers quizzed believed it likely that fraud would see an increase following the introduction of contactless cards.
Fraud is also a problem for credit card use, costing GB pound 428 million in 2006 alone.
It’s clear these issues are a huge concern for members of the public, so can we ever really give up on cash?
Experts predict that cash has far from had its day. The UK payments association, APACS, believes that although cash payments are exhibiting a slow decline, cash will still account for 52% of all our payments in ten years’ time.
Certainly, cash is integral to the UK’s infrastructure, and without its regular delivery by our industry, the economy would very quickly grind to a juddering halt.
Are we really ready to eliminate the use of cash altogether, then? I think not.
