Although recent circumstances have certainly accelerated talk of the ‘death of cash’, predictions of its demise have been around for many years.
In fact, take it back a hundred and thirty years or so and you’ll fi nd renowned American, science fiction author Edward Bellamy, writing about a cashless future in his books. So, discourse surrounding a ‘cashless society’ certainly pre-dates lockdown.
Trends such as the introduction of online and mobile banking and the rise of contactless payments have long been features of modern society. There is no doubt that the pandemic has accelerated this trend at a tremendous pace, with credit and debit card usage soaring, as “we don’t accept cash” became a familiar refrain over fears that handling cash could spread the virus. The maximum contactless spend was upped to £45 in April to facilitate this, with 66% of Mastercard transactions in the UK now contactless6 .
Time for the century old cash prophecy to come true?
The move to online, mobile and card payments points to a more permanent shift in consumer behaviour for many, but with the transition to all-electronic gathering momentum, what about the huge raft of people who are staunch cash users? Cash is still a necessity for 25 million people in the UK7 . An entirely cashless society assumes that every person has the means, ability and technological know-how to pay by card or device for every transaction. So, although cash usage is indisputably eroding, it is vital to maintain access to cash for some societal groups, including the elderly. 6 Mastercard, 2020, 7 Age UK, 2020
It is important to take professional advice before making any decision relating to your personal finances. Information within this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.
Tax and Estate planning are not regulated by the Financial Conduct Authority
The value of pensions and investments can fall as well as rise. You may get back less than you invested.
Will writing is not regulated by the Financial Conduct Authority.
Fill in the form below and one of our experts will be back to you within 24 hours.