Rural and older consumers ready for transition to cashless society

By Liz Wells in Industry News 10th June 2020

Rural and older communities are as happy to make cashless payments as their younger and city-dwelling counterparts, new research reveals.

Hitachi Capital UK’s research of 2,000 UK consumers shows 55% of those living rurally now feel prepared for the transition to a cashless society. In addition, 70% of those in rural areas are more comfortable using cashless payments since the lockdown began – more than those in urban areas (66%).

The research also shows that 68% of consumers are now more accepting of making cashless payments since the Covid-19 outbreak, while 52% feel prepared for a transition to a largely cashless life. One in ten consumers have gone contactless for the first time, the poll revealed.

Across the age groups, 66% of over 55s feel more comfortable in using cashless payments since lockdown began. The research shows they aren’t far behind younger counterparts, as 16-24-year-olds were only slightly more comfortable making cashless payments (67%). Those aged 35-44 years old came out on top (72%), followed by 25-34-year-olds (70%) and 45-54-year-olds (69%).

However, the research reveals prevailing concerns about the shift to contactless payments that need to be addressed: fraud (42%), cashless payments acceptance availability (31%), and dealing with technical issues (30%).

Vincent Reboul, managing director of Hitachi Capital Consumer Finance, said: “Our research shows that across age groups and different areas of the country we’re experiencing a seismic shift towards a cashless society, even in rural areas, which was previously a concern. During lockdown consumers have become more adept at leading a predominately cashless life.

“As the high street starts to open up, this should give businesses the incentive to launch or expand their e-commerce channels and invest in direct delivery models to adapt to the changes in consumer behaviour.

“Retailers who can successfully replicate the in-store experience online and create a seamless end to end journey will complement the greater willingness and confidence amongst consumers to make payments by more technologically advanced means.”