Digital money and NFC payments are to make wallets and the need to carry physical cash redundant within five years, new reports have suggested.
A recent study, carried out by PayPal has suggested that by 2016 Brits will be scrapping their paper and coin currency instead opting to make in-store payments and money transfers via their smartphones and other portable tech devices.
“2016 will mark the real start of money’s digital switchover in the UK,” said Carl Scheible, Managing Director of PayPal UK. “We’re not saying cash will disappear entirely, but we’ll increasingly use our phones and other devices rather than our wallets to pay in-store as well as online.”
With NFC tap-to-pay technologies still in its infancy and with a small number of retailers beginning to offer dedicated store apps which allow users to make small payments through the likes of PayPal, the move to digital currency has already begun.
On the upcoming move Scheible added: “We’ll see a huge change over the next few years in the way we shop and pay for things. By 2016, you’ll be able to leave your wallet at home and use your mobile as the 21st century digital wallet. Our vision of money is to enable you to pay for something from wherever you are, whatever device you’re on – a PC, mobile phone, tablet, games console and a whole lot more.
“The lines between the online world and high street will soon disappear altogether. Children born today will become the UK’s first ‘cashless generation’. It will be completely natural for them to pay by mobile.
When do you think digital currency will take the reigns and become the UK’s leading method of payment? Let us know via the comments box below.