With the popularity of online shopping, it should come as no surprise that there’s been an uptick in card-not-present purchases.
A new report from the U.K. Cards Association (UKCA) finds that the amount of purchases made through debit and credit cards has more than doubled in the past decade. There were 6.7 billion purchases made by credit and debit cards in 2006, and last year, U.K. shoppers brought the number up to 16.4 billion.
What’s helping to drive these U.K. card-not-present transactions is a combination of online spending and contactless payments. The UKCA data show that 39 percent of card purchases were done through these two methods in 2016. The year before, the rate was 24 percent.
The mobile app payment method is seeing some of the more aggressive growth, with Barclaycard research showing a 90 percent rise in the use of its Android app through the end of this year. It appears that a majority of contactless and mobile payments will be driven by the younger shopping demographic.
Is this the beginning of the end as far as using cash for purchases in the U.K.?
Research from Payments UK seems to indicate the end of cash as it predicted plastic debit will push cash out by 2018. The end of physical cash as we know it has slowly become a major concern over the last few years as studies like these indicate a rise in cashless and mobile payment preferences by consumers.