One in three Brits now carry less than a fiver in cash – while one in 20 never carry any money, a study has revealed. Research showed that a huge reliance on credit and debit cards and a dramatic increase in online shopping means we now use cash to pay for less than a third of our purchases.
It also emerged instead of paying for purchases using traditional notes and coins, we are now more likely to hand over plastic or make payments over the internet using digital wallets.
The study also found more than one in five think physical cash will completely disappear over the next 20 years, with internet and even mobile phones used more frequently.
More than one in ten even said they would happily give up the notes and coins that fill up their pocket or wallets right now if they had the choice.
Siegfried Heimgaertner, CEO for online payment solution Skrill which carried out the study as part of its Future of Money campaign, said:
”Times are changing with cash, and even credit and debit cards increasingly making way for online transfers, digital wallets and payments via mobile phones or apps.
”Consumers are finding it quicker and easier to click a button than fumble with their change.
”With only 3% of payments in Sweden still made in cash, the coming years are going to see radical changes in this area.”
The study of 2,000 Brits also revealed almost one third of people think they will use less cash over the next ten years, while 42% think they will make more payments on their debit cards.
And already, 30% of people use their debit or credit cards to pay for everything, regardless of how small an amount it is for.
35% feel annoyed if a shop only accepts cash, with 13% even saying they buy things they don’t really need to take them up to the minimum amount to be able to pay on their card.
However, 19% of Brits admitted that using their credit or debit card makes it harder to keep track of their spending, with a further 21% saying they are less likely to stick to their budget if they don’t pay with cash.
Researchers also found that 51% of people think digital wallets or online transfers will see an increase over the next few years, with 38% expecting to spend more online this year than in previous years.
Already, a huge 82% of Brits plan to shop online next year, and 13% of people would like to absolutely all of their shopping online if this was possible.