Companiesandmarkets.com

Mobile phones to replace debit cards within the next eight years

Press Release   •   Feb 19, 2013 13:15 GMT

The use of debit and credit cards could be in decline within eight years, according to the UK Payments Council.

It is predicting that more and more of us will use mobile phones to make payments and that by 2021, fewer of us will be using plastic.

The way that we pay for things has changed markedly in the last decade. The use of cheques continues to fall, halving every five years, and we use cash much less than we used to.

In 2001, 43% of our shopping was paid for in notes and change. By 2011, that had fallen to 30%. Most of that is accounted for by very small payments, for less than £5.

'Recent innovations such as payment via a mobile phone, which ten years ago some felt to be science fiction, will soon be commonplace,' says Adrian Kamellard, chief executive of the PC. 'The 2000s were the decade of the debit card. The 2010s are likely to be the decade of the mobile phone.'

However, not everyone thinks the use of cash will continue to decline. Ron Delnevo founded Bank Machine, which installed the first independent cash point in the UK in 1998.

"Cash has been around for 2,500 years. Even in our fast-changing world, it is still the payment method used for 80% of all transactions around the planet," he said.

Follow us on Twitter @CandMResearch


Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.