Picture the scene. It’s 2020. You’re at the checkout in a convenience store with a carton of milk. But you’ve got no cash and you’ve left your cards at home. No problem. You scan your right index finger; the green light flashes. Purchase approved and you leave. Easy.
Is this a realistic vision of the future, or are we only ever likely to see such scenes in science-fiction movies such as Minority Report? Predicting the future is never easy, but I believe that new technologies will prove the death knell for cash. We’re not there yet, but a cashless society is not as fanciful as it seems. Recent research suggests that many believe we will stop using notes and coins altogether in the not-too-distant future.
New payments technologies are rapidly transforming our lives. Today in the U.S., 66% of all point-of-sale transactions are done with plastic, while in the U.K. it’s just under half. But while a truly cashless society is some time away yet, there is raft of groundbreaking technologies that will make cash a mere supporting act in the near future.
Making payments with smartphones will also become the norm within a few years.
Take contactless cards for instance. They are perfect for those small purchases. Why go to the hassle of carrying loose change when you can swipe a card to make a purchase within seconds? Thirty-one percent of us put an item back on the shelf if we aren’t carrying enough cash. Consumers want the convenience new technologies offer, and retailers are losing billions a year by not offering a range of payment options.
Contactless cards help address this problem, and although leading High Street retailers now accept them, many independent retailers don’t yet. But as we become accustomed to the convenience of contactless, we will expect it everywhere we shop.
I’ve seen it happening abroad already. In Iceland, the buses don’t take cash; taxis assume you are paying by card; coffee shops expect you to wave the plastic for a simple espresso. Sweden isn’t far behind. It will happen in the U.S. and U.K., too.
