The document summarizes an IIBA UK North Branch virtual event on May 21st 2020 about the history and future of cashless payments. It discusses the declining use of cash in the UK and globally, factors influencing the transition to digital payments like COVID-19, challenges faced by those dependent on cash, and ways business analysts can help address this issue. The presentation covers these topics, takes polls of attendees, and includes an appendix with additional context on digital payments.

1. IIBA UK North Branch
Virtual Event – 21st
May 2020
Andrew Precious
Business Architecture Manager and Head of BA Practice
Volunteer - IIBA UK Chapter - North Branch
@UKIIBA #UKIIBA
IIBA UK North Branch LinkedIn group
https://www.linkedin.com/groups/5168049/
IIBA UK LinkedIn group
https://www.linkedin.com/groups/55932/
United Kingdom
Chapter

2. © AND Digital 2018© AND Digital 2018
Cashless Futures
IIBA UK 21st May 2020

3. ● The history of cash.
● Where we are today in the UK?
● Where we are across the globe?
● What about Covid?
● What is Cash Dependency?
● How can BAs help?
● Q&A
What We’ll Cover

4. Quick Poll - #1
This is a social event right? What are you
drinking right now?
A - Nothing
B - Beer / Cider
/Wine
C - G&T (or
similar)
D - Non-Alcoholic
beverage

5. Let’s go back
in time!
PhotobyAndreyGrushnikovfromPexels

6. A Brief History Of Money...

7. A Brief History Of Money...

8. A Brief History Of Money...UK

9. “
“…Even today’s coins and banknotes are a rare form of money. The sum total of money
in the world is about $60 trillion, yet the sum total of coins and banknotes is less than
$6 trillion. More than 90 per cent of all money — more than $50 trillion
appearing in our accounts — exists only on computer servers.
Sapiens (2011), Yuval Noah Harari

10. A Brief History Of Money...UK

12. Where Are We Now?
2009 2019 2034
£
10 years ago 6 in every 10
transactions were made in cash.
Last year only 3 in 10 transactions
were cash.
In 9 years time that figure is
expected to be below 1 in 10.
Even if we are not cashless in the next decade - there will be less cash

13. ATMs Close
Research by Which? showed that 300 UK
ATMs per month closed between November
2017 and April 2018
Branches Close
Over 3,000 bank and building society
branches closed between 2015 and 2018
Where Are We Now?
PhotobyAlexandrosChatzidimosfromPexels
PhotobyChrisPanasfromPexels

14. Quick Poll #2
How much does it cost to run the UK
Cash Infrastructure each year?
A - £257m B - £500m
C - £2.57bn D - £5bn

15. 72% of UK households
own a smartphone.
Vs.
Where Are We Now?
25-34 YOs
97% own a
smartphone
65+ YO
40% own a
smartphone

16. Not Just The UK

17. More Unusual Trends
Hong Kong Riots
People stop using
cards for payment
and transit in riot
areas.
Biohacking Parties
Over 4000 people in
Sweden have had
NFC implants under
their skin
Amazon Orville
Tech giant in
advanced trails with
pay with hand tech.
Happy Shoppers
Alibaba offers a fun
twist to cashierless
checkout with
discounts for
smiling!

18. More Unusual Trends (Print out Only)
Hong Kong Riots
People stop using
cards for payment
and transit in riot
areas.
● Whilst over 60s in Shenzhen can now use
their faces to get free transit on the
subway, there were distinct privacy
concerns expressed over the border during
the Hong Kong riots.
● As well as protestors wrapping subway,
payment and ID cards in tin foil there was a
surge in people using cash to pay for
subway rides to and from riot locations
(whether protestors or not).
● A sobering reminder that a cashless
society is a surveillance society and that
civil liberties may be eroded for the
benefits of convenience.
Biohacking Parties
Over 4000 people in
Sweden have had
NFC implants under
their skin.
● In Sweden, where there is strong faith in all
things digital and good trust of national
government and institutions, there is an
increasing trend to have NFC Chips
implanted into hands. It is estimated that
over 4,000 people have had this procedure
done so far - often at biohacking parties.
● Whilst this may be seen as extreme it could
help reduce plastic waste too. 6 Billion
plastic cards are produced globally each
year.
Amazon Orville
Tech giant in
advanced trails with
pay with hand tech.
● For a less surgically intrusive way to pay
for things with your hand take a look at
Amazon Orville. The system which has
gone into pilot with US health food
retailer Whole Foods, uses the shape,
veins and marks of your hand to make a
payment in the same way that you
might use a card elsewhere.
● Whilst a typical card payment take 3 to 4
second Orville can reportedly process a
payment in less than 300ms.
● At the moment, the tech is accurate to
0.0001 percent, but Amazon hopes to
improve that number to 0.000001 percent
before its eventual launch.
Happy Shoppers
Alibaba offers a fun
twist to cashierless
checkout with
discounts for
smiling!
● As a fun extension of China’s every
increasing ‘pay with your face’
technologies, Alibaba’s Future Mart has
offered a novel and fun twist. As well as
using facial recognition to make the actual
payments for goods that you’ve picked up,
they also offer discounts for smiling!
● Perhaps the largest deployment of ‘pay
with your face’ payments has been the
Alipay and KFC partnership in China. The
fast food retailer deployed ‘smile to pay’ to
300 outlets in 2018.
● There is some press speculation that China
may be more receptive to facial
recognition tech than european markets
due to prevalence of existing government
surveillance systems.

19. What And Who Is Controlling The Move?

20. Retain/IncreaseCash
Connectivity (specifically rural) increases
Consumer behaviour (e-enablement, convenience, reward)
Physical security concerns (mostly at merchant)
Merchant enablement – competitive
Increases in cash handling costs / fees
Government push (unlikely at this stage)
Privacy concerns
Black / grey market (Crime including tax evasion)
Data / internet blackout concerns
Merchant reluctance
Regulation (e.g. Philadelphia)
Political positions (protection of cash service)
ConsumerMerchantsPolitical
ConsumerMerchantsPolitical
DecreaseCash
There are various factors that are likely to further decrease or retain/increase cash usage in the future. Many of these are not directly
market forces but rather consumer outlooks.
What Might Change?
Hygiene / health Fears of bank / economic collapse

21. What About Covid?
● WHO advise that cash may be a main
transmission route. Later stepped back.
● Scams rife.
● Some EU Countries raise contactless limits. UK
followed on 1st April to £45.
● Government cash decontamination.
● In the UK cash usage halved within a few days.
● Many people overcoming inertia.
● Not sure at this stage how much this will
accelerate cashlessness.
PhotobycottonbrofromPexels

22. Quick Poll
What % of the UK population would
struggle to cope in a cashless society?
A - 17% B - 25%
C - 7% D - 32%

23. 8 Million Adults
- 17% of the UK population-
would struggle to cope in a
cashless society
Photo by Adrianna Calvo from Pexels

24. It’s Not About Age...
Low Income
Households
Underbanked
Physical
And Mental
Health
Homeless
Immigrants
Children
Photo by Markus Spiske from Pexels

25. What Can You Do?
● Be aware (done!).
● Tell others (easy).
● Ensure that you cater for cash, especially if you
offer a critical service.
● If you’re in a position to shape backlogs do
something to support the 17% who are under
represented when it comes to payments and
managing money.
● Generate Ideas - Hackathon, focus research, etc.
“Technology plays a role as both a driving factor and
as a force for inclusion and exclusion”

26. ● The history of cash.
● Where we are today in the UK?
● Where we are across the globe?
● What about Covid?
● What is Cash Dependency?
● How can BAs help?
● Q&A
What We Covered

27. © AND Digital 2018
Q A

28. © AND Digital 2018
Out
Over
Thanks

29. Appendix 1 - Digital Pocket Money
Special shout out to Revolut for launching
Revolut Junior in March and adding
competition to the market.
With declining cash use there’s some
concerns that children won’t understand
physical cash value. However pocket
money apps teach digital cash concepts
better.

30. Appendix 2 - Cash and Charity
Produced by
and shared with
thanks to Sarah
Wentford

31. Appendix 3 - High Level Numbers

32. David Avis
David Avis is a Squad Lead at AND
Digital with over 20 years’ experience
leading business analysis, tech and
business change across the Financial
Services sector. He is a self-professed
payments geek, and has expertise in a
wide range of retail consumer payment
products and digital payments
platforms.
Adam Armstrong
Adam Armstrong is an Associate Product
Developer at AND Digital with 10 years’
experience in retail. Adam has a passion
for building high-quality products that
users love.
Appendix 4 - Speakers And Contact Details
adam.armstrong@and.digital
https://www.linkedin.com/in/adamarmstronguk/
david.avis@and.digital
https://www.linkedin.com/in/davidavis/
https://twitter.com/DavidAvisBA