# The death of cards and what to expect next Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-06 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: The Shift Towards Mobile Payments in Retail Meta Description: Learn how payments are evolving in the fintech industry and why mobile payments will soon dominate the market. Stay ahead of the trends with MultiPay Global URL: https://financedigest.com/the-death-of-cards-and-what-to-expect-nexthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/hands-paying-with-debit-or-credit-cardrtezapns-sbi-300976121-1736838041021-compressed.jpg) _By **David Maisey,** CEO of_ [_MultiPay Global Solutions_](https://www.multipayglobalsolutions.com/) Payments are one of the most exciting areas in fintech. Being a big part of our day-to-day lives, payments have become a key element in the customer experience journey, and an important way to gather data to help improve services and business offerings. It’s no wonder that we have seen huge innovations in payments over the last 20 years or so. For consumer-facing businesses, however, it is an ongoing race to [stay on top](https://www.financedigest.com/worlds-top-bankers-expect-markets-to-stay-turbulent.html "World’s top bankers expect markets to stay turbulent") of the latest trends. Not too long ago and cash was king, with it accounting for 58% of payments in 2009. Now however, it is card that is the primary payment method making up [over half (51%)](https://www.ukfinance.org.uk/system/files/UK-Payment-Markets-Report-2020-SUMMARY.pdf) of all payments in 2019. While many saw the death of cash coming, few have realised that cards too will soon be replaced by [mobile payments](https://www.financedigest.com/what-is-the-optimum-mobile-payment-mix.html "What is the optimum mobile payment mix?"). Looking at recent data from [UK Finance](https://www.ukfinance.org.uk/system/files/UK-Payment-Markets-Report-2020-SUMMARY.pdf) shows the shift that is happening with mobile payments. Already in the UK, 10 million adults have registered for mobile payments. What is most striking is the age demographic of those wanting to use them. The fact is that much of the adoption is coming from those aged between 25-34 years old, which represents one of the largest groups with [disposable income](https://www.statista.com/statistics/824464/mean-disposable-income-per-household-by-age-uk/#:~:text=During%20the%20year%202019%2F20,those%20aged%2085%20and%20over.). With Gen Z consumers also keen to use mobile payments, it is quite likely that as these age groups progress and make up a bigger proportion of consumers, then mobile payments will soon be the dominant method. For consumer-facing businesses, like those in the retail sector, there is a need to [ensure they are meeting the demands](https://www.financedigest.com/france-demands-twitter-ensure-it-can-preserve-safe-environment.html "France demands Twitter ensure it can preserve ‘safe environment’") of their customers and pivoting to become mobile payment first. The switch to being mobile payment first is good news though, thanks to their inherent ‘stickiness’. [Adoption is continuing to grow](https://www.financedigest.com/revenue-growth-of-the-exterior-car-accessories-market-to-be-influenced-by-growing-end-use-adoption.html "Revenue Growth of the Exterior Car Accessories Market to be Influenced by Growing End-use Adoption"). However, consumers who have made the switch are becoming increasingly used to making [payments via their mobile devices](https://www.financedigest.com/emvco-streamlines-approval-process-for-mobile-payment-devices.html "EMVCo Streamlines Approval Process for Mobile Payment Devices"). Currently usage is up at [nearly half (48%)](https://www.ukfinance.org.uk/system/files/UK-Payment-Markets-Report-2020-SUMMARY.pdf) of those that have registered for mobile payments in the UK using them at least once every two weeks. We can [expect the level of usage to only increase as more consumers and businesses](https://www.financedigest.com/german-businesses-expect-only-mild-recession-as-disruptions-ease.html "German businesses expect only mild recession as disruptions ease") make the switch too. Growth and ‘stickiness’ are good news for [businesses as it is helping to create new opportunities](https://www.financedigest.com/challenger-banks-missing-golden-opportunity-to-steal-business-from-competitors-by-repeating-same-old-mistakes.html "Challenger Banks Missing Golden Opportunity To Steal Business From Competitors By Repeating Same Old Mistakes") to improve the customer experience. For example, with most retailers offering a [digital version of their loyalty](https://www.financedigest.com/the-evolution-of-loyalty-and-its-place-in-the-digital-age.html "THE EVOLUTION OF LOYALTY AND ITS PLACE IN THE DIGITAL AGE") cards, mobile payment enables customers to pay and receive loyalty points all through their mobile device. This removes a barrier to the success of [loyalty card](https://www.financedigest.com/over-half-of-britons-say-loyalty-cards-encourage-them-to-buy-a-product-niq.html "Over half of Britons say loyalty cards encourage them to buy a product – NIQ") programmes, as a physical card can be lost or left at home, while consumers almost always have their mobile device on them. Going a step further, and retailers can even [develop software](https://www.financedigest.com/reckon-software-goes-from-strength-to-strength-with-appointment-of-new-partner-development-manager.html "Reckon Software goes from strength to strength with appointment of new Partner Development Manager") that combine the whole retail experience into a mobile app. This could see payment, loyalty cards, customer support and even in-store guidance provided via one single app. By offering these new types of service, retailers can improve their customer [experience](https://www.financedigest.com/video-collaboration-is-pushing-the-boundaries-of-the-customer-experience-in-financial-services.html "Video Collaboration is pushing the boundaries of the customer experience in Financial Services") and gather more insights and data on customer preferences too. It doesn’t stop there either, as mobile payments are also more [secure](https://www.financedigest.com/allpay-signs-with-eckoh-to-secure-telephone-payments.html "allpay signs with Eckoh to secure telephone payments") than card payments too. With mobile devices requiring a biometric authentication or PIN to confirm a transaction, they make it much harder for fraud to be carried out. With fraud losses on face-to-face purchasing costing retailers [over £64 million in 2019](https://www.ukfinance.org.uk/system/files/Fraud-The-Facts-2020-FINAL-ONLINE-11-June.pdf), reducing this figure will have a huge positive impact on many retailers’ bottom line. Nonetheless, it is not just the reduction in fraud that enable mobile payments to [boost profits](https://www.financedigest.com/aviva-boosts-investor-payouts-after-profit-beat.html "Aviva boosts investor payouts after profit beat"). Mobile payments also enable the launch of new [payment methods such as instant payments](https://www.financedigest.com/5-ways-to-maximise-the-value-of-instant-payments.html "5 ways to maximise the value of instant payments"). Already in use in other countries including Denmark, Switzerland and Italy, instant payments enable [bank-to-bank transfers between a customer and a retailer’s bank account](https://www.financedigest.com/new-legislation-makes-switching-bank-accounts-simples.html "New legislation makes switching bank accounts “simples”"). In doing so, they offer huge savings thanks to the removal and reduction of interchange and acquiring fees that are charged by card providers. With many retailers still recovering from the pandemic, the advantages that mobile payments offer will helping them [return to profit](https://www.financedigest.com/lufthansa-expects-further-significant-improvement-after-return-to-profit.html "Lufthansa expects further ‘significant improvement’ after return to profit"). To access these benefits, retailers [need to ensure they have the right payment infrastructure in place](https://www.financedigest.com/fintech-needs-women-5-reasons-why-this-is-the-place-to-be.html "Fintech needs women – 5 reasons why this is the place to be"). Having a payments system that can [process](https://www.financedigest.com/are-your-payment-processes-in-cheque-for-the-new-legislation.html "ARE YOUR PAYMENT PROCESSES IN CHEQUE FOR THE NEW LEGISLATION?") transactions regardless of payment type, acquiring bank or currency ensures businesses can keep pace with the latest payments trends and deliver a first-class customer experience. With [payment solutions now available that not only help deliver a better customer experience](https://www.financedigest.com/curating-a-fully-contactless-customer-experience-for-payments.html "Curating A Fully Contactless Customer Experience for Payments ") but also reduce the complexity of backend systems, transitioning to a mobile payment first approach can be quickly achieved. Payments are constantly shifting and evolving, and [retailers need](https://www.financedigest.com/high-street-crisis-why-retailers-need-to-focus-on-in-store-ux.html "High Street Crisis: Why Retailers Need to Focus on In-Store UX") to be ready for not only the death of cash but the eventual demise of cards too. As younger consumers continue to push the growth of mobile payments, forward-thinking retailers have an opportunity to not only stay on [top of the latest payment trends](https://www.financedigest.com/top-5-payment-trends-for-2016.html "TOP 5 PAYMENT TRENDS FOR 2016") but to also look to leverage it to improve customer service, reduce operating costs and increase innovation too. It’s time businesses make the shift and stay ahead of the [next evolution of payments](https://www.financedigest.com/the-next-frontier-of-payments.html "The next frontier of payments"). ![David Maisey, David Maisey, [CEO of MultiPay Global Solutions](https://www.financedigest.com/meet-tilak-joshi-the-fintech-ceo-building-modern-solutions-for-the-gig-economy.html "Meet Tilak Joshi: the fintech CEO building modern solutions for the gig economy") --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---