Digital money could replace cash in 2016

According to Research by Forrester Consulting, commissioned by PayPal, 2016 will be the year you throw your wallet away. Cash, cheques and cards will no longer be a necessity, all you’ll need will be your mobile phone and you’ll be good to go, whether online or on the high street.

As well as paying for goods without having to queue, the report reveals shoppers can look forward to being able to carry digital loyalty cards, promotional offers and receipts on their phones – keeping everything in one place creating a virtual shopping hub.

The findings are based on interviews with 10 senior executives from major UK businesses, representing a combined 2010 turnover of £85 billion. They were asked about when they expect consumers to be able to pay for things on the high street with digital money rather than cash.

Nine out of ten believed these payments will be accepted within four years, while half of those interviewed believed the development could happen in three years. Almost half of all mobile users purchase something via the device every three months, the study suggested, and more devices will be in circulation over the coming years.

PayPal UK managing director Carl-Olav Scheible said: ‘We’ll see a huge change over the next few years in the way we shop and pay.

‘By 2016, you’ll be able to leave your wallet at home and use your mobile as a 21st-century digital wallet.’

Earlier this year, Barclaycard and Orange launched the Quick Tap mobile service in more than 50,000 shops for purchases of £15 or less.

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