UK set to make 120 million payments a day by 2024

UK set to make 120 million payments a day by 2024

Brits will make 120 million payments a day by 2024, as a steep decline in the use of cash is offset by the rise of contactless cards and the Faster Payments service, predicts an industry trade association.

Gazing into its crystal ball, bank-owned Payments UK expects 44 billion payments to be made in 2024, up 3.4 billion over 10 years and representing an average of 679 transactions per adult.

Debit card volume growth will come from increasing contactless card and e-commerce usage. In 2014 debit card payments represented 26% of all transactions but this is projected to rise to 42% by 2024 - equivalent to an average of 282 payments per person. Credit card growth will be more modest, with the number of annual payments per person rising from 41 to 53.

Meanwhile, the number of automated credit payments will soar from an average of 20 a year for UK adults in 2014 to 37 a year. This will be largely driven by Faster Payments, which will see the number of payments it processes rise from 771 million in 2014 to 1.94 billion in 2024.

In contrast, the number of cash payments is set to decline 30% over the next 10 years, from 18.1 billion to 12.6 billion. This would see cash represent around 33% of the total volume of consumer payments, down from 53% in 2014.

Cheque payments are expected to fall even harder, from 2.8% of all non-cash transactions in 2014 to 0.8% in 2024, with 135 million consumer cheque payments and 118 million business cheque payments forecast.

Comments: (2)

Joss Wilbraham
Joss Wilbraham - WMG Consultants Ltd. - Oxford 15 October, 2015, 15:44Be the first to give this comment the thumbs up 0 likes

It's a bold call to make predictions in payments nine years ahead. Undoubtedly, the volume of electronic payments will increase significantly, however, I don't agree with the Debit Card estimates. What about the impact of bank overlay services such as ZAPP's 'pay-by-bank'? A similar service in the Netherlands, called 'iDeal' now processes approximately 60% of all online payments compared with 4% via Debit Cards. Whether it is ZAPP or another provider, such services are going to dominate the European payments landscape as clearers and payment service providers convert to real-time processing.

A Finextra member
A Finextra member 15 October, 2015, 17:041 like 1 like

Predictions are always interesting to read as every word is full of drama but sadly little fact. The prediction of cash declining is not unfounded but it is arguably naive. It would be enlightening to see whether in these cold statistics people with low incomes were considered.

The effect of cashlessness on the elderly, very poor and homeless is a less sexy news item to consider. As the Telegraph reported, for those with no fixed residence or who need to keep tight control of their finances, using cash is more than a skills issue. Keeping cash as a viable method of payment along with the alternative digital payment methods makes sure that no part of society is excluded or allowing individuals & businesses to be at their most nimble and most financial aware at all times.

That is only possible with cash in the modern society.

Get your copy of the OneSpan eBook - How to minimise the risk of Social Engineering attacks in Banki

Trending Stories