By Daniel Hunter
The use of cards will rise by 75% from nearly 10 billion payments in 2012 to nearly 17 billion in 2022, predicts the latest UK Payment Markets 2013 report.
The rise of cards will be driven primarily by increased use of debit cards and online shopping.
Meanwhile, the number of cash payments will fall from 21 billion in 2012 to around 14 billion in 2022, as people increasingly use alternatives such as cards and automated payments.
Using cheques to make payments is also projected to continue to decline — from 477 million cheques in 2012 to around 186 million in 2022.
The use of Direct Debit is projected grow by 20% to around 3.7 billion payments in 2022 — driven by increased uptake of new regular commitments and a growth in the size of the adult population.
Mobile payments are expected to become a major payment channel over the next ten years. Some mobile payment services are already available and the range is expected to increase.
Mobile payments and internet banking are expected to rise from 356 million payments in 2012 to around 1.5 billion in 2022.
In 2014 the Payments Council will launch a new service to make secure account-to-account transfers using only a mobile phone number.
Internet shopping has seen a large growth in card payments in recent years. Nearly 40 million people bought goods or services online last year, mainly using plastic cards and it’s expected they’ll do so even more over the next ten years.
The report forecasts that alongside more use of contactless cards and mobile payments, e-commerce will be a major factor in the near-doubling of consumer card use from nearly 10 billion payments in 2012 to an estimated 17 billion in 2022.
“Over the coming decade we will see major innovation with the introduction of our Mobile Payments Service in 2014, the Current Account Switch Service next month and of course all the innovations brought to market by individual players within the payments field,” said Adrian Kamellard, Payments Council chief executive.
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