UK transport network continues on its journey to a cashless future | Content Loop
UK transport network continues on its journey to a cashless future
Kirsty Styles
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This article originally appeared on
The UK’s credit card makers, along with public transport operators, have
a new payments structure with the aim of rolling out contactless payments across the whole of the country.
Modelled on London’s
system, bus and rail operators will soon be able to offer PAYG contactless journeys across bus and rail, with your total daily spend amount capped to avoid shocking bills, as well as pre-paid ticketing for long trips.
This means people up and down the country should soon be able to use a contactless cards, or a smartphone, to pay for journeys and avoid having to print out tickets.
after it found just 1 percent of
journeys were made using this payment method, dropping from a quarter in 2000, so it’s clear the direction of travel is headed this way.
last year too, offering another way to pay along with top-up Oyster Cards and contactless credit cards.
Given the well-known
that splits the country, it’s not clear whether those people in the rest of the UK will be as happy to ditch their cash and switch to mobile payments as the Capital’s metropolitan elite.
And, that age old question: what if your phone runs out of battery mid-trip?
[UK Cards Association via ]
This article was written by Kirsty Styles from The Next Web and was legally licensed through the NewsCred publisher network.
You will soon receive the first Content Loop NewsletterThe Global Cashless Journey With MasterCard
The Global Cashless Journey With MasterCard
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MasterCard has introduced a new global report, &The Cashless Journey,& that reveals how major economies are progressing from cash-based to cashless societies. The cashless journey explores the evolution of consumer payment patterns in 33 countries from five regions, representing more than 85% of global GDP, taking in both developed and developing nations, using a single methodology.
The study focuses on the value of all consumer payments ($63 trillion in total spend), including those that happen beyond retail point-of-sale. In 2011, 34% ($21 trillion) of total global consumer spend was done with cash, with cashless payments accounting for 66% ($42 trillion). In examining consumer payment patterns around the world, researchers find that nations fall into one of four stages in their cashless journey. They are:
Inception: Countries just beginning their cashless journey. Many of these countries are still building the infrastructure necessary to move away from cash. In these places cash still accounts for the large majority of the value of all consumer payments.
The average Readiness score for countries in this segment is 34, suggesting that most of these places still have a number of macroeconomic impediments to going cashless.
The average Trajectory score of 28 for this segment shows that despite these impediments, some countries are growing cashless share faster than others. In some of these countries governments have been successful in promoting a move away from cash, while in the case of at least one country in this segment, technological innovation is driving the move to cashless.
Countries in an inception stage: India (where 32% of the value of consumer spend is cashless), Russia, Indonesia (both 31%), Kenya (27%), United Arab Emirates (26%), Colombia (24% ), Peru (23%), Saudi Arabia (19%), Nigeria (10%), Egypt (7%).
&It is important that emerging economies such as Indonesia (31%), Russia (31%) and Egypt (7%) are just embarking on their cashless journey, but are in many cases changing cash share of payments at a much faster pace than developed nations.
oThe United Arab Emirates (26%) is among a group of countries where the respective governments have taken strong leadership in promoting electronic payments to support their social and economic goals.
oKenya (27%) is an example where disruptive technology is contributing the most to decrease cash share of consumer spend.
Transitioning: Countries at this stage have created the requisite infrastructure to go cashless, and are shifting share of consumer payments, often quite rapidly. These countries are underway on their cashless journey.
Countries in this segment have an average Readiness score of 51 and an average Trajectory score of 31, but cash still accounts for the majority of the value of all consumer spend.
The Readiness and Trajectory figures for these countries suggests that many macro-economic impediments to going cashless have been removed, and cashless products are capturing share at a rapid pace in most of these countries. This is not universally true however. In spite of high Readiness scores, some countries have stalled on their cashless journey and are still using more cash than expected.
Countries in a transitioning stage: Brazil (57%), China (55%), Spain (54%), Mexico (53%), Malaysia (45%), Greece (44%), Italy (44%), South Africa (43%), Taiwan (43%), Poland (41%), Thailand (41%).
oThe most rapid recent shift away from cash was observed in China, where cash share of the value of consumer payments is estimated to have declined by as much as 20% between 2006 and 2011.
Tipping Point: Countries at this stage of the journey have moved most large consumer payments to cashless methods, but significant use of cash may still persist at retail point of sale. They are at the point where consumer preferences will drive future share shift. The average Readiness score for these countries is 78, but the average Trajectory score is only 17, suggesting that, despite having all the typical pre-requisites in place for nearly cashless consumer payments, the cashless journey for several of the countries in this segment has stalled for some reason. There is no one answer for why this is the case, and reasons can range from adverse macro-economic conditions, to habit and cultural norms.
Countries in tipping point a stage: the United States (80%), Germany (76%), South Korea (70%), Singapore (69%), Japan (62%). MasterCard&s study indicates that how ready a country is to move to a cashless society is determined by factors like the accessibility and affordability o the scale and marke the level of technolo and participation of consumers in the formal economy.
However, in countries such as Germany (where an estimated 76% of the value of consumer spend was cashless), Japan (62%), Spain (54%) and Taiwan (43%), cultural behavior appears to be keeping cash usage higher than market conditions would suggest.
Nearly Cashless: Countries at this final stage of the journey have moved the vast majority of the value of consumer payments to cashless methods. Many countries at this stage are seeing growth of use of cashless solutions for low value payments, such as PayPass.
The average Readiness score for countries in this segment is 86, indicating that all macroeconomic prerequisites for going cashless are in place.
The average Trajectory score for countries in this segment is very low at 14, but this is not surprising, as a shift in the little remaining cash share of consumer spend may require new solutions, and will almost certainly take longer to achieve.
Countries where cashless payments are nearly ubiquitous: Belgium (93%), France (92%), Canada (90%), Sweden (89%), the UK (89%), Netherlands (85%), Australia (86%).
Source: MasterCard
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