More than a quarter of UK consumers (27%) think they will be making payments using wearable devices including watches and wristbands within 10 years, 22% think they will be regularly using their fingerprint to make those payments and 7% think they will use a microchip embedded in their body, research from Lloyds Bank reveals.
The survey, based on the responses of more than 2,000 UK adults, found more than a third of UK consumers (34%) expect to use a mobile device to make everyday payments in the next five years.
It also reveals that nearly half (48%) expect to be using contactless payments on a daily basis in the next decade, with more than four in 10 (43%) agreeing that contactless payments are the future.
However, almost half (47%) don’t feel that mobile payments will ever be a main method of paying for goods and services — 59% of which were aged 45 and over.
When asked about why they don’t currently use mobile to make payments:
- Two in five (44%) said they do not think it is secure or safe;
- 18% don’t have the right phone;
- 17% don’t know anything about mobile payments;
- 16% don’t know how to use the technology.
Among the survey’s other findings:
- A quarter think they will no longer need cash to pay for goods and services within five years;
- The majority believe they will still be using credit and debit cards (63%) as well as cash (52%) in the next 10 years;
- Half of those aged between 55 and 75 are likely to think that they will always need to have cash, compared to 40% of those aged between 18 and 54;
- Women are significantly more likely to think they will always need to have cash in the future (46%) compared to 40% of men;
- 39% believe they will no longer need cash to pay in 10 years and 48% believe they will no longer need cash in 20 years.
“Whether it is contactless, wearable tech or fingerprint ID, people are increasingly expecting to use new technologies to make payments rather than rely on cash,” says Claire Garrod, head of personal current accounts at Lloyds Bank.
“The benefits of these new developments are gradually being understood and embraced by banks and their customers to make payments more convenient without compromising security.”