Countries such as Canada, Sweden and Japan have a lot to teach the UK about preparing for the shift to paperless payments, a new Retail Week report reveals.
The end of cash is nigh, as millennial and Gen Z consumers drive the use of innovative payment technologies.
Cash payments in the UK have rapidly declined over the past decade, leading industry body UK Finance to predict that only 16% of UK consumer transactions in 2027 will be made in cash, compared to 38% in 2017.
This is one of the key findings from a new Retail Week report, The Cashless Society: Are You Ready?, which outlines the ways retailers need to prepare for the move to paperless payments.
Using new research and global case studies from countries already transitioning away from physical money, The Cashless Society outlines how retailers can embrace cashless payments and increase in-store sales.
Aligning digital strategies for cash usage
With debit card payments overtaking cash usage for the first time in 2018, retailers need to evaluate the different payment methods they accept and invest in developing payment strategies that improve efficiency for both the merchant and the consumer.
By providing in-store shoppers with simplicity, immediacy and ubiquity in how they make transactions, retailers will in turn be able to cut queues and boost sales.
But the move to paperless payments is not without its challenges.
Preventing fraudulent transactions will need to be high on the retail agenda, and the speed of contactless payments relies on the strength of the broadband network supporting it – no internet means no transaction.
The reality of a world without cash is yet to be realised, but by implementing digital payment strategies now, UK retailers will be in a stronger position to compete in the digital economy of the future.
Find out more
Download The Cashless Society: Are You Ready? today to find out:
- The changes in consumer behaviour driving cashless payments
- How digitising in-store payments can increase average shopper value
- What retailers need to do now to prepare for a cashless society.