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Half (51%) of people in the UK think physical wallets will become less relevant as digital ways to pay become more popular, according to new research from Mastercard.
The data points to a decline in physical wallets, as 21% saying they don’t expect to carry a wallet or purse within the next five years – rising to 38% among Millennials.
The findings come as data points to a global increase in the adoption of digital payment methods. 93% of consumers will consider using alternative means of payment, including contactless, QR code, biometric payments, and cryptocurrency transactions in the next year. This uptick in digital coincides with the continuing downward trajectory of cash usage in the UK – a decade ago around 60% of payments were made in cash, and UK Finance estimates that this figure will fall to 6% by 2031.
The Mastercard research shows that this is particularly the case among young people. A third (31%) of 18-24 year olds say that the digital wallet on their phone is their preferred way to pay, compared to just 5% of those aged 55+, more than half (55%) of 18-34 year olds would rather just carry their phone in place of a wallet or purse, and 41% of Gen Z say they don’t expect to ever buy a physical wallet or purse again
From Physical wallets in decline as smartphone payments accelerate:
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