One in seven UK high street shops went cashless in last year – survey

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And, while cash is still accepted by 77% of small and medium sized retailers, some 14% have gone cashless in just the last year.

A recent inquiry by the Treasury Select Committee into cash acceptance warned that without action, the UK risks creating a two-tier high street, where some customers are effectively shut out of shops, cafés, and local services because they cannot pay digitally.

The biggest driver to becoming a ‘cashless’ business is fraud prevention (22%) followed by security concerns (21%) and lack of customer demand (20%). One-fifth (19%) also highlight that digital payments made bookkeeping and accounting much easier to manage. A lack of deposit facilities (13%) and the closure of the local bank branch (11%) is also cited.

From: One in seven UK high street shops went cashless in last year – survey.

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Meta’s AI Smart Glasses and Data Privacy Concerns: Workers Say “We See Everything”

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“In some videos you can see someone going to the toilet, or getting undressed. I don’t think they know, because if they knew they wouldn’t be recording.”

From: Meta’s AI Smart Glasses and Data Privacy Concerns: Workers Say “We See Everything”.

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AI disruption, wage deflation, research abundance

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Oh, and as a final point… this piece was largely drafted by AI, executing an extensive prompt laying out the arguments we wanted to make and examples we wanted to use in one iteration, with only slight tweaks and edits required afterwards. While analysts will remain the source of ideation and need to write their thoughts in the form of a comprehensive prompt, AI is enabling better and faster execution.

From: AI disruption, wage deflation, research abundance.

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Revolut profits surge to record £1.7bn as it wins more customers

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Revenues jumped to £4.5bn last year from £3.1bn in 2024.

The results are the latest sign of Revolut’s improving fortunes after the $75bn fintech this month clinched a full UK banking licence after a four-year-long tussle with UK regulators.

Founder and chief executive Nik Storonsky had said the accreditation was Revolut’s “number-one priority”, arguing that the licence will be key to its growth.

The licence will allow it to lend at scale in the UK and push into lucrative markets dominated by traditional banks. Finance chief Victor Stinga said on a media call that credit cards and overdrafts would be the first products to be launched for UK consumers now that Revolut had secured the permit.

Tuesday’s results showed that the company’s performance was underpinned by a rise in customer numbers to 68.3mn, up from 52.5mn the previous year.

The higher market share boosted Revolut’s fees from card payments as well as the interest earned on deposits, two important profit engines.

Fees from card payments rose 45 per cent to £1bn while interest income climbed 23 per cent to £974mn. Revolut also generated £708mn from customer subscriptions in 2025, up 67 per cent.

Revolut charges monthly fees for premium tiers that give users perks such as higher interest on savings, travel insurance and fewer fees on currency exchanges.

Revolut’s wealth business, which includes revenues from users trading digital assets, has become a cornerstone of its business model, and helped lift the group to its first profit in 2021. However, the division was among Revolut’s slowest-growing business lines, increasing revenues by 31 per cent to £663mn following a slump in major cryptocurrencies.

From: Revolut profits surge to record £1.7bn as it wins more customers.

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True crime, fake romance: Inside one victim’s fight with banks | American Banker

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Kimberly Sutherland, global head of fraud and identity at LexisNexis Risk Solutions, said financial institutions have tools to detect fraud patterns and understand the behavior of their customers.

From: True crime, fake romance: Inside one victim’s fight with banks | American Banker.

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Experts celebrate White House reversal on bank citizenship EO | American Banker

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Banking experts welcomed the White House’s decision to delay a proposal that would have required banks to collect citizenship information from customers.

From: Experts celebrate White House reversal on bank citizenship EO | American Banker.

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Requiring additional checks for citizenship will debank our millions of Americans who don’t possess the documents necessary to prove citizenship, or whose name or address conflicts with their most recent paperwork. How do you prove your citizenship? Only half of Americans have passports. Passports are quite unevenly distributed across America: Eight out of 10 New Yorkers have one, but only two out of 10 West Virginians do. Ironically, the 10 states with the lowest passport rates (37% or below) all voted for Trump the last three elections.

From: Trump should scrap his plan to make bank customers prove citizenship | American Banker.

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POST Why bank cards may be heading the way of the cheque book

Well, exciting times in the British payments cards industry. The forward-looking and innovative people at the Financial Conduct Authority (FCA) have responded to the Chancellor of the Exchquer’s “red tape bonfire” to stimulate economic growth by removing the £100 limit on contactless transactions at retail point-of-sale (POS).

The banks have, by and large, yawned and ignored the change. Customer aren’t asking for the change and  UK Finance, the industry body, says “there is no demand or need” to increase the £100 cap. People who want to spend more than £100 are, it seems, entirely happy to insert the card and punch in a PIN.

Or at least those who can remember it are. On my last visit to Las Vegas, I was with a colleague in a taxi to our hotel. When the taxi pulled up, my colleague held up an iPhone to card terminal in the back of the taxi. Nothing. The driver said that he didn’t take contactless and that we had to insert or swipe a card. My colleague rummaged around for a card and put it in terminal, but then couldn’t remember the PIN and had no memory of actually putting it in a terminal ever.)

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New Barclays Consumer Spend data just released shows a record 94.6% of all eligible in-store card transactions were made using contactless in 2024. The 2023 figure was 93.4%, and shoppers used also the technology more frequently last year – 236 times on average, in fact.

The cost of the average purchase also went up ro £16.10 (vs. £15.69 in 2023). This equates to total average contactless spend of £3,803 per person in 2024, up from £3,623 in 2023.

For the fourth consecutive year, the over 65s were the fastest growing group of users, with 84.1% currently using this method. Convenience continued to drive uptake, as over two thirds (67%) of those aged 61-79 agree that contactless payments are easier than chip and PIN transactions.

From: Barclays data shows contactless spending broke a new record in 2024 | Convenience Store.

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And, while cash is still accepted by 77% of small and medium sized retailers, some 14% have gone cashless in just the last year.

A recent inquiry by the Treasury Select Committee into cash acceptance warned that without action, the UK risks creating a two-tier high street, where some customers are effectively shut out of shops, cafés, and local services because they cannot pay digitally.

The biggest driver to becoming a ‘cashless’ business is fraud prevention (22%) followed by security concerns (21%) and lack of customer demand (20%). One-fifth (19%) also highlight that digital payments made bookkeeping and accounting much easier to manage. A lack of deposit facilities (13%) and the closure of the local bank branch (11%) is also cited.

From: One in seven UK high street shops went cashless in last year – survey.

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I think this is more evidence that the end of the plastic card era is in sight. When cards went through middle age they bought the sports car of tokenisation and made some younger friends (Apple Pay and GooglePay). But now, as cards approach their golden years, the prospect of retirement is real. I am hardly the only digital payments enthusiast that thinks this, by the way. Some years ago, I saw Anthony Jenkins (the former CEO of Barclays) give  talk at a UK product launch in which he predicted that mobile phones were going to replace cards long before they replaced cash, a view that was later reinforced in Deutsche Bank Research’s study on the future of payments. I agreed with them back then, of course, but there still remains the questions as to what payments will we use those mobile phones for? Instant credit transfers or digital currency? Request-to-pay and Libra transfer or WeChat message with digital Yuan inside? Bank credit transfers or AmazonAMZN-1.6% credit transfers?

Inside Meta, a Rogue AI Agent Triggers Security Alert — The Information

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A rogue AI agent recently triggered a major security alert at Meta Platforms, by taking action without approval that led to the exposure of sensitive company and user data to Meta employees who didn’t have authorization to access the data.

From: Inside Meta, a Rogue AI Agent Triggers Security Alert — The Information.

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POST Big Bother

I happened to be listening to a SlateTBD podcast about AI generated music. One of the presenters was talking about AI “slop” music being piped into to bars and restaurants and elevators and wherever. She said “most people consume music passively, and I don’t think they’re going to mind that much that what they’re consuming passively is AI”. This immediately made me think about George Orwell’s “1984”. Everyone, I am sure, is familiar with the book. Even if you’re never read it, you know about Big Brother even if social media has delivered into a world of millions of Little Sisters instead. As a vision of the dystopian future that we have created for ourselves, I personally find Terry Gilliam’s “Brazil” more accurate and more terrifying, but there’s no doubt that Orwell’s vision (and the quality of his writing) had a hugh impact on the younger me. As it happens, I think one of the most interesting predictions of 1984 is not the Party or Big Brother or Room 101 but the “versificator”. The verisifcator is a machine that produces banal content for the “proles” (ie, us). Here is an extract from the book that will give its context:

Under the window somebody was singing. Winston peeped out, secure in the protection of the muslin curtain. The June sun was still high in the sky, and in the sun-filled court below, a monstrous woman, solid as a Norman pillar, with brawny red forearms and a sacking apron strapped about her middle, was stumping to and fro between a washtub and a clothes line, pegging out a series of square white things which Winston recognized as babies’ diapers. Whenever her mouth was not corked with clothes pegs she was singing… one of countless similar songs published for the benefit of the proles by a sub-section of the Music Department. The words of these songs were composed without any human intervention whatever on an instrument known as a versificator.

Orwell saw a future in which AI slop was pumped through the open sewer of new communications technologies directly into the masses’ brains in order to stop them from thinking about politics. To be frank, I think this is a pretty accurate description of any number of social media channels, but it seems particularly prescient in the light of what is happening in the music industry. The French streaming service Deezer recently published its annual results in which said that streams of AI-generated music on its platform were dominated by fraudsters, who upload and then repeatedly listen to thousands of songs to generate royalty payments to the detriment of legitimate artists. It isn’t only them, of course. Songs created for fraudulent streaming are estimated to account for around 5-10% of content across all streaming platforms and the proportion of slop is growing: Deezer see around 60,000 AI tracks now being uploaded to their platform every day, heading towards half of the daily intake.

Now, on the one hand, so what. If AI can generate music and people like it, who cares (about from record labels and musicians) whether the hot tracks are made by mahcines or not. Who cares if it was created by a robot, or the artist themself is a product of agents? Do streaming sites have an obligation to label music as AI-generated? And does it even matter, if you like what you hear?
A survey on the topic suggested that 97% of respondents could not spot an AI-generated song.

(I cam the opposite because most of the new music I hear on the radio sounds to me as if it was AI-grnerated although apparently some of it is real.)

If I owned a record label I’d certainly prefer to have AIs rather than expensive, unreliable and temprametnal actual musicians just as most companies would prefer to have AI instead of expensive, unreliable and tempramental actual programmers.

But suppose that some people want to know if the music they like was created by an AI and some musicians want to know if their music is being listened to by an AI? This brings us back to the ABCs of digital identtiy yet again: know-your-agent, know-your-business and know-your-customer. How do I know that I am listening to Spotify, how do Spotify know that a track is really comes from Hawkwind’s label and how do Hawkind know that it is a real person (eg, me) who is listening to the track?

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Sony Music has revealed the scale of its battle with artificial intelligence fakes of its artists by saying it has taken down more than 75,000 examples of AI-generated material featuring its biggest stars, including Harry Styles.

From: Sony Music says over 75,000 items removed in battle against AI deepfakes.

This is a Red Queen’s race. The industry should be focusing on labelling real content, not trying to find illegal content (of which there will be an effectively unlimtied amount).

Think about the framework that is needed to make the world work properly. Even just to know who is in the band and who is authorised to upload music on their behalf seems a huge undertaking.

Stablecoin market fit depends on the market

A recent survey of nearly 5,000 crypto enthusiasts (and thus hardly representative of the overall population) across 15 countries that was sponsored by BVNK (just purchased by MasterCard), YouGov, coinbase and Artemis found fewer than half held any stablecoins at all. Of those that did have stablecoins, most work in the crypto industry, trade crypto or (interestingly) participate in prediction markets. The remainder are cross-border freelancers or sellers in online marketplaces. The survey, in summary, finds stablecoins a niche product for a narrow population.

 

In high-income countries today, stablecoins do not deplete bank deposits.

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