Some 64 per cent of 18 to 25 year olds in the UK now use a mobile wallet, according to new research from social money transfer app Moneymailme.

The research revealed that 48 per cent of 18 to 25 year olds believe that physical money will be obsolete within the next 20 years, while over a third said that we will no longer need it in 15 years’ times. Three in ten respondents said that they do not think cash will ever stopped being used or produced.

Eight in ten of those surveyed said that they make purchases under £20 at least once a day, while 62 per cent said that they felt frustrated when they are faced with a ‘cash only’ sign at a bar or shop.

PayPal remains the most frequently used online payment service among 18-25 year olds (52 per cent), while newer market entrants such as Apple Pay (18 per cent) and Google Wallet (nine per cent) are beginning to gain more of a market share.

While 36 per cent of respondents said that they currently do not use a mobile wallet, 14 per cent stated that they have no intention in having one, suggesting that there is room for considerable growth in the market.

Mihai Ivascu, CEO of Moneymailme, said: “This generation of young people has grown up with mobile technology and for many of them using cash seems like a very dated concept, especially with the range of alternatives available to them. In 2015 electronic payments overtook cash for the first time in the UK and as this generation gets older this trend is only going to continue until producing physical cash is no longer desirable.”

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