There is a change on the horizon that promises to affect all of our lives. Once key barriers are overcome, we will see the removal of cash from society. It is a change that will happen much quicker than you would ever imagine, and marketers need to be ready. By James Lord
The high cost of cash is a price that Retail Banks can no longer allow to burden their profit and loss statement. In the UK 2.9 billion cash withdrawals were made from ATMs in 2008 to the value of £195 billion (Datamonitor 2009, p18). Sourcing this vast amount of cash presents a huge cost to the sector which, given pressures to maximise returns for shareholders, has to be removed.
With this in mind it is no surprise that contactless payment technology is slowly picking up speed. By just holding their plastic against a terminal, customers are now able to pay for low value goods at any merchant that is equipped with the technology. To date, around 11,000 UK retail outlets offer this service (Keyfacts 2009, p9).