Cash and Digital Payments in the New Economy – Spring Statement 2018
Digital technology has revolutionised the way people shop, sell, and save, and people are increasingly moving away from using cash. According to government research, cash has fallen from being 62% of all payments by volume in 2006, to 40% in 2016, and is predicted by industry to fall to 21% by 2026. It represented only 15% of the total value of consumer spending in 2015.
Meanwhile, the growth in the use of digital payments has been rapid. Contactless payments made each month have grown by nearly twenty times in the three years to June 2017.Research suggests that two-thirds of people are making more payments digitally than they did five years ago.
The document Cash and digital payments in the new economy: call for evidence is a call for evidence to better understand the role of cash and digital payments in the new economy, with the aim of keeping pace with changes in the ways that people pay for goods and services.
The review will look at how the transition from cash to digital payments impacts on different sectors, different regions and different demographics. It is seeking both domestic and international evidence of what the government can and should do in this area. It will also consider barriers to the adoption of electronic payments, including charges, and will consider whether the current denominational mix of coins and banknotes should be changed. It looks at some of the issues around counterfeit coins and notes and also the use of cash for money laundering and to avoid tax.
The consultation closes on 5 June 2018.