Two years ago British shoppers reached the tipping point of using cards for more transactions than cash on the high street. A key driver for this is the simplicity of using contactless cards and devices for ever lower value payments. Contactless payments are now second nature for many UK shoppers and with mobile payment services such as Apple and Android Pay using contactless functionality, consumers pick their smartphone as the preferred alternative to cash and cards.
According to a study by Mastercard on the impact of innovation, two-thirds of British consumers (63%) believe that generally, innovation is having a positive impact on society but still think that there are some areas that need it more than others.
About 3 in 4 people think there are already enough – or too many – digital services in online networking, and suggested other areas in greater need of digitization and innovation, such as public transport and healthcare (76%).
The survey also showed Brits are ready to embrace technology when it comes to making payments.
The report also found that 82% are regularly shopping online or using e-commerce services (such as Uber). In fact, in January this year Britain’s shoppers reached a second tipping point, as mobile devices such as smartphones and tablets started to account for more than half (51%) of all online sales.
These two milestones indicate the increasingly pivotal role smartphones are having and will continue to have on our spending habits, both instore and digitally.
The convenience of online shopping is underlined by the fact that two-thirds of consumers (64%) have never had a negative experience, although 1 in 5 people say that they have at one time not received what they ordered (18%).
Elliott Goldenberg, head of digital payments for Mastercard UK & Ireland said: “We see the smartphone as the ‘remote control’ for consumers’ financial lives. It will be essential for authenticating transactions, controlling your account, managing payment card functions and more. It is an incredibly powerful and practical tool for payments.”
Approximately 3 in 4 people expect that in the future, digital services will be used in more and more areas of life, and by more and more people, rather than benefitting the privileged few (76%).