The payments brand of Discover Financial Services and UKHospitality highlights that only 8% of the world’s money exists in physical cash, showing a shift in recent years towards electronic and mobile payments, including those using cryptocurrencies such as Bitcoin.
The report, entitled ‘Future of Payments’, combines insight and data from major UK hospitality businesses.
It predicts that the future of payments will be centred on instantaneous transactions, and that businesses should prepare themselves for the trend continuing, but notes that traditional payment methods will not disappear in the near future, and must therefore be factored in to plans.
Major contract caterers around the UK are adapting to a shift in payment methods.
A spokesperson for Aramark commented: “A substantial percentage of Aramark customers use cashless payments. Aramark has proprietary systems and app technology that facilitates the growing demand for a cashless payment environment.
“We use many forms of technology across iOS and Android for educational and business sectors that allow not only cashless payments but also loyalty, promotions and GPS communications once a customer agrees to allow consent.”
Nicki Tinniswood, group finance director for CH&CO, said: “Within our B&I and Commercial portfolio of business, around 20% of revenue is derived from physical cash whereas 26% of revenue comes from cashless systems such as credit and debit cards as well as payment apps (i.e. YoYo).
“Within our education sites, cash sales are negligible and around 8% of revenue comes from card payments and systems such as Parent Pay. Given the nature of our business the remainder of revenue is derived from invoiced sales. As technology advances, we continue to explore payment applications in order to keep up with changes in consumer behaviour.”
UKHospitality chief executive, Kate Nicholls, noted that human interaction will not become extinct as part of the payment process. It will, rather, adapt “in order to create a simpler, easier and more enjoyable consumer experience”.