Payment methods
In the UK, the use of cash to make payments has fallen significantly in recent years. In 2008, 60% of all payments made in the UK were in cash. By 2018, this had fallen to 28%, and by 2028 it is estimated that only 9% of all payments in the UK will be made in cash.
There has been a significant increase in the use of debit cards to make payments. In 2017 these became the most frequently used method of making payment, overtaking cash for the first time.
Advances in payment technology have led to the introduction of new payment methods that are designed to make it easier to complete secure payments without using cash. Examples include:
- Chip and pin is a method of paying for products and services using a debit or credit card that contains an electronic chip. The cardholder enters a personal identification number (PIN) to complete a payment. 鈥 Debit and credit cards now contain a An electronic circuit that computer systems are made from., which requires a personal identification number (PIN) to authorise the payment. Previous methods were a lot less secure as full card details were shared.
- A secure way for customers to purchase products or services using a debit, credit or smart card. 鈥 Introduced in the UK in 2007, contactless has become a very popular way to make payments of 拢30 or less using a credit, debit or smart card. The technology also gives people with smartphones the option to store their card details on their phone and make instant payments using services such as Apple Pay or Google Pay.