‘Explosive’ growth in online banking apps is contributing to a surge in popularity for debit card payments, which could overtake that of credit cards within the next decade according to the Payments Council.
These changes are set to see people increasingly forego cash transactions in favour of their smartphones or tablet devices, with the number of purchases dropping by 34 per cent from 20.8bn a year now to just 13.7bn by 2022.
Over the same time period the use of debit cards is set to grow from 7.6bn transactions to 13.8bn, driven largely by the younger generations.
Debit cards overtook cash in terms of total spend as far back as 2009 when the figures were £264bn and £262bn respectively with non-cash methods set to account for over half of all transactions by 2015.
Mobile payments meanwhile are expected to quadruple in volume from 356m a year to 1.5bn whilst cheque book usage halves from 823m payments to just 334m.
In a statement the Payments Council said: “The digital economy will continue to grow rapidly, driving change in the way payments are made and received. Much recent innovation has been around mobile payments, and mobile has the potential to make a significant impact on the payments landscape.”