CARD PAYMENTS
The way we pay for goods and services is changing rapidly . So will the rise of smartphones and smartwatch payments make physical cards obsolete ?
WRITTEN BY : ALEX CLERE
The advent of new technologies – including mobile wallets and smartwatches – as well as the residual effects of the COVID- 19 pandemic mean that digital payment methods are on the increase . But will that mean the end of cash or even plastic cards ?
“ When people discuss the future of payments they tend to predict the end of cash ,” say Marion Laboure and Jim Reid , authors of Deutsche Bank research into the future of payments published in 2020 . This is not a vision they agree with , but they do accept that , while cash will remain in circulation , “ the coming decade will see digital payments grow at lightning speed ”.
Indeed , Deutsche Bank ’ s research shows that consumers in six major markets intend to rely less on cash and cards in favour of contactless and mobile payments . Paying for goods using a cheque is expected to become less commonplace in five out of the six markets – only China sees a future for cheques as a payment method , the only country witnessing a net positive increase in all payment methods that Deutsche Bank asked about , perhaps reflecting the country ’ s emerging middle class and rising levels of disposable income .
Cash is expected to decline as a payment method in three of the six countries – the UK , France and Italy – but not in the US , China or Germany . The latter is among the
CATHARINA
EKLOF CHIEF COMMERCIAL OFFICER , IDEX BIOMETRICS
FRAZER
HARPER VP OF PAYMENTS PRODUCTS , DOJO
PAT
PHELAN MANAGING DIRECTOR UK & I , GOCARDLESS
DR STEPHEN WHITEHOUSE PARTNER IN OLIVER WYMAN ’ S RETAIL
78 August 2023