A report from supermarket chain the Co-Op shows that consumers believe they will exchange wallets for mobile phones in the next ten years.
The report of 2,000 customers showed that although two-thirds of transactions at the supermarket chain are currently made in cash, 65% of those surveyed believe that by 2025 they will only need their phone to make mobile payments.
Although the report showed that Chip and PIN is still the most popular card payment method, the number of contactless transactions has tripled over the past year. The latest figures released show that contactless payments reached almost 11 million transactions in one month, a 15% increase on the previous period.
This could be due to the introduction of Apple Pay in July 2015, a move which allowed a large percentage of consumers to make mobile payments. The number of mobile transactions will most likely increase further when both Android and Samsung Pay are launched later this year.
It appears that the Co-Op’s customers are using contactless payments for smaller purchases, as the average basket spend on contactless is £8.66, compared to the larger basket total of £18.16 when paying using Chip and PIN.
Cheryl Marshall, Retail Chief Information Officer at The Co-op Food says: “It takes a while for consumers to trust modern technology. However, we predict that by 2025, mobile payments will overtake cards and cash.”
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