UK consumers have been quick to change the way they make purchases thanks to rapidly developing technology, an expert has claimed.
Dan Wagner, founder and CEO of Powa Technologies, has provided his views on a report released today from Halifax, which reveals a rise in digital transactions is causing a significant drop in the use of physical currency.
“Withdrawing and carrying cash is becoming increasingly less appealing as digital options advance, and the figures also display a broader change in consumer behaviour,” he says.
“The latest figures reflect modern consumers who browse and transact on their own terms, whether at home, in-store or on the move, using their smartphone as the tool of choice.”
With Halifax revealing that cashless payments now represent 83.4% of all current account transactions made in Britain, Wagner believes retailers are under high pressure to respond changes in consumer behaviour, driven by technology.
Research from Halifax revealed that digital transactions are now leading the pack, with cash making up just £18.33 of every £100 spent by UK citizens.
Smartphones have been pegged as the key game-changer and mobile transactions are expected to grow from £9.7 billion this year to £53.6 billion by 2024.
“Smartphones have become a dominant force in almost every aspect of our lives, especially when it comes to commercial transactions,” adds Wagner.
Contactless cards have been commended for their influence on changing consumer habits, while internet banking has also seen a peak in activity.
Web-based payments now account for £15 in every £100 spent in the UK.