Revolut believes the UK could become fully cashless in just 10 years, and wants to be at the forefront of the revolution. CTO and co-founder Vlad Yatsenko explains to Briony Richter why this vision is close to becoming reality
Revolut has been breaking down barriers in the banking industry since its launch.
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According to GlobalData research, the number of Revolut users sat at around 1.5 million in 32 countries, as of April 2018.
There is no denying that the vast majority of consumers enjoy and benefit from a range of digital payment methods. The simplicity of conducting banking tasks is one of the biggest motivators to go digital. Carrying wallets and numerous cards has become an annoyance.
Speaking to EPI, CTO and co-founder, Vlad Yatsenko details what the UK needs to do to become cashless: “If the UK aspires to be fully cashless within the next 10 years, we need to continue to innovate and encourage the use of financial technology. Britons still have a very strong emotional connection to cash, even if they aren’t using it as much, so it’s best to slowly make the transition into becoming a fully cashless society.”
Across the world, cash transactions are continually and significantly falling. According to the 2017 World Payments Report (WPR), non-cash transactions will increase at a CAGR of 10.9% between 2015 and 2020.
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By GlobalDataSo should the UK accelerate its cashless efforts? Yatsenko certainly thinks so: “The advantages of a cashless society are an increase in ease, convenience and security. Cashless transactions speed up services and reduce the risk of crime – specifically robberies. Digital transactions are easier to track.”
The idea of a cashless economy can appear utopian, and yet in Sweden, it is within touching distance. Yatsenko explains that the UK is behind due to infrastructure. “Unfortunately, UK infrastructure lags behind countries like Sweden, and our relatively large population isn’t an ideal test-bed for cashless innovation.
“We’ve still got a long way to go until lumbering traditional banks fully adopt cashless technology, and even then not all consumers tend to trust the big banks or institutions with their information.”
Wiping out cash
Sweden is wiping out cash at a rapid rate. According to the WPR, 36% of the population in Sweden claim they never use cash, compared with 17% of Brits.
SEB, one of Sweden’s largest banks, only handles cash in seven of a total of 118 branches, and the bank has stated in the past that its new focus will be on providing digital tools in branches that are designed to encourage customers to complete banking tasks on their own. ‘No cash accepted’ signs are increasingly becoming a common sight across Sweden.
Cashless technology can be tricky to integrate into places in the UK that are rural and more difficult to reach. Many worry that a cashless society could further marginalise the elderly and lower-income citizens.
Whether you are for or against increased surveillance, a cashless society will significantly increase the level of insight governments and banks have into individuals’ lives. In a world without cash, every payment is traceable.
Today, Facebook profiles reveal a public persona that an individual can tweak and control, but in payments, consumers put their money where their mouth is.
Many argue, correctly, that digitising all payments will reduce levels of financial crime, such as extortion, corruption and burglary. That said, it also opens the doors to different types of financial crime. Companies and consumers will still be vulnerable to security risks such as online fraud and cyberattacks. If all transactions are digital, a well-executed cyberattack could lead to massive losses. Furthermore, by adding more financial details online, along with the personal data that is already accessible, crimes like identity theft will increase.
Revolut believes that, overall, a cashless society has more positives than negatives, and wants to lead the way in creating a thriving and secure one. Yatsenko states: “Revolut is enhancing the accessibility and ease of cashless societies with its mobile and contactless payments services.
“Revolut’s latest feature, disposable virtual cards, includes card details that automatically change after every transaction, protecting customers against account fraud, cybersecurity threats and runaway subscription fees.
“We believe that digital-only banks are beginning to be recognised by the majority of the public, driving significant numbers of customers to change banks, and building awareness and trust,” Yatsenko notes.
“Digital-only banks are offering powerfully attractive alternatives and improvements on how people handle their finances, and increasingly convincing consumers they can be trusted by delivering on their promises for security, reliability and privacy.”
Technological innovation is pushing countries towards a cashless environment. Looking at London in particular, where contactless technology was successfully rolled out by Transport for London, it is clear there is scope for such innovation to thrive in the UK. Whether it takes 10 years or longer, Revolut is set to make breakthroughs in developing more cashless initiatives.
