One in three UK adults believe that smartphone payments will outpace credit and debit cards by 2020
A new study has found that a third of the UK population believes that credit and debit card payments will no longer be the preferred method of payment in 2020 and that paying with smartphones will take over.
The Banking Moving Forward study by Experian shows that while cash and card payments still dominate, people believe that alternative methods of payment such as smartphones will become more widely used over the next five years.
While 67% of respondents felt that cash will decrease in popularity, 41% thought that the use of credit and debit cards will also decline.
However, 46% of respondents were worried that their identity might be stolen online. In addition, 60% of smartphone users said they had no malware protection on their devices, leaving them vulnerable to hacking by cyber fraudsters.
When asked about how other forms of payment could fare, four in five of those polled said that secure online payment platforms that let people shop using their debit card, credit card or bank account without sharing their financial details will become more popular by 2020.
Some 14% of those polled said they thought that biometrics, such as retina or fingerprint scans, could become commonplace, with 44% saying they would be prepared to make payments via biometric scanning. In addition, 19% said they would consider paying for goods and services using voice authentication.
Derek Garriock, head of business solutions at Experian UK and Ireland, said: “People will certainly be faced with more choice in years to come with the payment methods and providers they choose. Their decision will ultimately be based on the ability to pay for something, securely, anywhere and at any time at their own ease and convenience.
“Security is a key concern for many individuals, who may be willing to adopt new ways of paying but have not yet done so, even amongst the younger generation. This is understandable considering that one in six adults has fallen victim to a cyber-attack via their mobile device.”
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