Cash remains the most popular way of making small payments, with 96 per cent of all spending under £5 done with notes and coins.
Sandra Quinn, director of communications at payments industry body Apacs, which carried out the research, said despite the consumer's continuing love affair with cards, cash remains the first choice for small value payments. But she said this may all change with the arrival of contactless technology on cards.
In response Dave Birch posts in Competition for cash:
Some unrepentant e-cash fanboy was quoted saying that "society will eventually end its love affair with cash and embrace technology - as in Japan where mobile phones, not bank cards, are replacing coins and notes". It this a reasonable comment or techno-blinkered boosterism? We need, as Aneace says, to find some figures on actual transactions performed with mobile phones. Let's look at Japan.
Link to Mobile Phone: The New Way to Pay? (pdf) by Krista Becker, Emerging Payments Analyst, Federal Reserve Bank of Boston.