Less than half of people now carry a physical wallet or purse as part of their day-to-day lives, a report indicates. Just 48% of people surveyed for cash access and ATM network Link consider carrying a physical wallet to be an essential part of their routine.
The research indicates that many purses and wallets are gathering dust in drawers, with more than four-fifths (82%) of people saying that they do own one. The growing popularity of digital payments and wallets, allowing people to pay with cards, phones and watches, means that leaving the house without a physical wallet is becoming easier and more common, Link said.
The report, titled Tapping into Trouble? The UK’s Growing Digital Payment Dependency indicated that people aged 45-plus have a preference for physical debit cards, while people aged 18 to 44 were more likely to favour digital wallets. One in nine (11%) UK adults habitually leave home with only a digital wallet as a form of payment, the research indicated, rising to nearly three in 10 (29%) people aged 35 to 44.
Despite digital payments being the default option for some people, more than half (51%) of those surveyed said they had used cash in the past week. Link also raised concerns that technology failures have left consumers exposed across payments, banking and broader services.
More than six in 10 (61%) people have experienced payment failures, the research indicated. Of those experiencing payment failures, some people abandoned the purchase they were trying to make, or relied on someone else to foot the bill for them.
The research also found that some people may be relying on a limited choice of payment methods, which could leave them without a back-up payment option if they are unable to use them. Among those with a digital wallet, 40% only had one card set up on it – and 60% of those using a digital wallet said they only carried this kind of wallet.
Some 7% of people said they carry no cash at all, while 23% have none at home, according to the survey of more than 2,000 people across the UK in June. Adrian Roberts, deputy chief executive, Link said: “Our research shows that growing reliance on digital comes with growing risk. Recent experiences from around the globe have demonstrated that digital payment systems can fail and two-thirds of people have faced some form of disruption already.
“It is therefore vitally important that the UK maintains a breadth of payment methods.”
He added: “We also need to think about cash acceptance and how it can be made easier for retailers to continue to accept it in shops. In parallel, digital payment systems need to be stronger and more resilient and the work led by the Bank of England on the National Payments Vision is an excellent step in that direction. Individual consumers can also take simple steps to protect themselves should there be disruption to digital payments.”
Link has some suggestions for people to consider to help make sure they can access money when they need it:
1. Consider maintaining a cash reserve.
2. Have a diversified range of payment networks to choose from.
3. Consider using multiple digital wallets.
4. Do the basics – sign your cards and know your Pin.
5. Understand your contactless payment limits.
6. Consider whether having an alternative current account and banking app could be helpful.
7. Make sure you can access a portable charger, if needed.
