Over a third of UK consumers believe that the UK will be a cashless society within the next 10 years, according to new research from Equifax.

Furthermore, some 53 per cent of 16-34 year olds believe the UK will be reliant on digital and card payments by 2028, compared to just 22 per cent of those aged 55 and above.

Despite this, the survey also found that cash still has its place in society. Coins were cited as the top payment choice for vending machines (60 per cent), parking meters (57 per cent), charity donations (53 per cent) and buses (52 per cent), while paying with notes is the preference for taxis (42 per cent).

Security remains the biggest fear for consumers when adopting the use of contactless cards and online transactions, with 27 per cent of survey respondents not feeling confident that online payments or contactless transactions are secure. A further 26 per cent think it is difficult to track money spent using digital methods.

The co-founder and chief technology officer at digital challenger bank Revolut, Vlad Yatsenko, is also of the opinion that the UK will be cashless in 10 years, with the rise of blockchain, contactless and mobile payments driving change.

“We’re in the midst of an exciting smart payments revolution. We can pay for our lunch with our watches and passers-by are now able to donate to buskers via contactless,” said Sarah Lewis, head of ID and fraud at Equifax.

“This growth of new payment technologies is drawing us closer to a cashless society, but long standing preferences for cash remain in certain situations, particularly among older consumers. The shift to digital payments in the new economy raises important questions about the role of different payment methods, and highlights the need to balance the convenience people want with security,” she said.

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