Are we moving toward a time without cash?
Unfortunately, we are not talking about the day when there is no longer a need for money and all services and goods will be exchanged on a system of faith and good will...
No, there has actually been for the first time, a situation where the majority of payments for goods and services in the UK have been paid for electronically, without tangible cash.
Cash payments made up less than half the total amount of payments made last year according to the Payments Council, down from 52% in the previous year to just 48% this last year.
So what does this mean?
More and more people are leaving their banknotes in their bank accounts and paying using plastic instead. Many people enjoy the idea of being "cashless" because of the various different charges that can come with withdrawing money and the prominence of online shopping.
According to the Independent, there are now more than 7.2 billion devices in the world; more devices than people. With this statistic in mind, it is quite easy to believe that electronic payments are overtaking cash payments. After all, you can't pay with cash on the internet.
However, one thing that may deter people to continue using online payments is fraud and online scams. BBC reported back in March that online banking fraud had increased by a massive 48%. This was coupled with the fact that overall losses on UK cards from fraud totalled £479m in 2014.
When it comes to businesses the figures in regards to cash and non-cash payments include organisations, consumers and financial institutions. The use of non-cash payments by businesses to other businesses is extremely important in keeping a paper trail and also to speed up the process.
Streamlining processes is important for businesses as it allows employees to make better use of their time on business critical activities.
At IRIS, we always develop our software with our customers interests in mind and this means helping our customers to streamline their processes. In recent times, auto enrolment is the biggest change in pensions and payroll in recent times and the IRIS AE Suite™ is the IRIS solution.
The IRIS AE Suite™ automatically assesses employees, distributes payslips and P60s electronically and publishes pension letters to employees via the cloud.