The Royal Mint has issued a statement saying that coins are here to stay, in response to a report by the Co-op which has predicted the “death of cash and bankcards”.
Though the Co-op identifies that nearly two thirds of all transactions made within its retail stores are paid for using cash, it has seen the use of contactless payments triple during the last year. This, it says, is due to the availability of mobile payments such as Apple Pay and the continued rollout of contactless bank payment cards. In March 11 million mobile payment transactions were made throughout its store network, an increase of 15% compared to February.
Contactless security concerns persist
The report also identified that 65% of customers do not wish to use mobile payments in store at the moment, with concerns regarding security cited. Other reasons included a preference for human interaction as well as doubt over increased transaction efficiency.
That said, 25% of customers who don’t currently use contactless payments admitted that they would consider using them in future.
The Royal Mint says cash will remain
A Royal Mint spokesman has reportedly said that though cash’s demise has long been predicted it remains the payment choice for the general public, providing confidence, convenience and security.
“Cash is still the most prominent payment method for UK consumers and global demand for coins is as strong as ever.”
Chip and Pin remains dominant
One surprising revelation is that users are using Chip and Pin to authorise transactions which could be made using contactless payments. Though the limit for contactless payments in the UK is £30, many users choose chip and pin for payments over £10. The average spend of Co-op customers using contactless payments is £8.66, but £18.16 for those using Chip and Pin.
However, this is a statistic which the Co-op expects to change with predictions that mobile payments will account for 65% of its transactions by 2025.
Read the Co-op’s report here: The Way We Pay: Cash is still king of convenience