Is it possible that we will soon be living in a cashless society?
According to a new poll, over three-quarters of us (71%) believe the UK is moving toward a cashless society. According to Paragon Banks research, one in three people believe this will happen in the next five years. During the pandemic last year, cash use plummeted  according to latest numbers from trade group UK Finance, cash payments fell by 35% last year, with 6.1 billion transactions reported. Last year, coins and banknotes were used for 17% of all payments in the UK, while contactless payments accounted for 27%. However, there are reasons to believe that currency will continue to exist in the near future. The UK government has stated that it plans to pass legislation to safeguard the future of cash, and a number of industry initiatives are underway to ensure that people will continue to have unfettered access to coins and banknotes. According to a survey of 2,000 people conducted by Paragon Bank, two-thirds of those polled indicated they used cash less during lockdown than before, and many believed the trend would continue. Due to technology advancements that make it easy to pay for things using smart devices such as phones and watches, one in five people were using cash less frequently. The collapse of currency may have ramifications for wallets, as a quarter of people (25%) now choose to carry a purse or wallet either never or only sometimes. Only 13% expected to revert to their pre-pandemic purchasing habits. However, only one-quarter of respondents (26%) perceive a shift toward a cashless society as a positive, while one-third (34%) regard it as a negative. Many people were apprehensive about relying more on IT systems, however some believed that having less cash on hand could potentially lower violent crime, according to the study. Furthermore, while contactless technology may be highly convenient for many individuals, its crucial to realize that it may not be available for some people, who will still respond in cash. The concerns people have expressed about the consequences of going cashless are very real elements that reflect the role that cash currently plays, says Derek Sprawling, savings director at Paragon Bank. (This is a brief piece.)