The UK could become a cashless society within 20 years

Cashless technology takes over the world

The UK could become a cashless society within 20 years, according to research published by London & Partners to coincide with London Technology Week 2016.

A survey of more than 2,000 consumers shows that 68 per cent believe that cashless technologies will completely replace physical money by 2036. The figure is higher in London where three quarters of people said they thought cash would disappear within 20 years.

The data is supported by figures showing the rise in contactless payment technologies. New data from MasterCard shows that contactless spending has increased by 326% year-on-year in the UK.

Last week the Bank of England announced that it will be launching a fintech accelerator programme that will work with technology companies to harness fintech innovations. Mark Carney, The Governor of the Bank of England also remarked that “Financial technology companies will change the nature of money, shake the foundations of central banking and “deliver nothing less than a democratic revolution for all who use financial services”.

Speaking at an event during London Technology Week on the growth of the capital’s fintech sector, Gordon Innes CEO of London & Partners said: “London is the global leader for fintech. With the world’s leading financial services centre and Europe’s fastest growing technology hub, London’s fintech companies are disrupting the current financial industry and changing the way we interact with money. As a result, they are attracting record levels of investment and world class talent. From peer-to-peer lending companies, such as Funding Circle and Zopa, to remittance companies, such as WorldRemit and TransferWise, London’s fintech companies are pioneering the latest disruptive fintech innovations.”

London’s status as a leading financial centre and technology hub has helped the UK to become a global leader for financial technologies. Recent research from EY shows that the UK’s fintech sector generated £6.6 billion in revenue last year and attracted approximately £524m in investment. The fintech sector is also a major employer supporting 61,000 jobs more than in New York, or in Singapore, Hong Kong and Australia combined.