The UK government is thinking about the future of digital payments
There seems little risk that cash will be banished totally, but the UK government is exploring future developments when it comes to digital payments. Their latest consultation was revealed in the Spring Statement from the Chancellor of the Exchequer Philip Hammond.
There were several measures revealed in the Spring Statement that will be of interest to marketplace merchants, including regarding VAT on online marketplaces and VAT collections.
The government is looking ahead and especially considering future developments and they are asking for input from the British public. The is an important consultation that British online merchants are well informed to contribute to.
In the UK, digital payments have become integrated into our everyday lives. Spurred by convenience, the rise of e-commerce, and mobile technology, digital payments have grown by around 85% since 2016, with a corresponding decline in the use of cash. All digital payment methods have experienced this growth, with debit cards, and particularly contactless payments, increasing significantly. The number of contactless payments made each month have grown by nearly twenty times in the three years to June 2017.
– UK Government
You can read more about the consultation here. And maybe make a contribution. There’s a lot at stake and online entrepreneurs and marketplace merchants are at the forefront of the payments revolution and your views could be critical.
There’s no doubt that digital payments, in various shapes and forms, are increasingly important and the volumes of usage are growing dramatically. But the future of cash isn’t seriously in doubt because so many people like to pay with coinage and finest folding. But how could the payments ecosystem be improved? That’s the question.
What improvements and innovations would you like to see in the world of online payments with specific regard to selling online? With eBay moving to the Adyen platform shortly, the environment will be changing.
What improvements and innovations would you like to see in the world of online payments with specific regard to selling online?
government backed digital currency/cards.
– if instead of giving Visa/Mastercard 2.5% of the entire world (compunded to 25%), the government could easily run it as a not-for-profit scheme, much the way they don’t take commisions on cash, which is infinitely more expensive to facilitate.
or much more likely, keep the 2.5% (compounded to 25%) themselves as a stealth tax.