Financial Technology,Oprisk,comment,Retail Payments,technology,Transaction Banking,

Financial Technology,Oprisk,comment,Retail Payments,technology,Transaction Banking,

The Bank of England's chief cashier has revealed she doesn't use contactless cards because she doesn't completely trust the technology.

Victoria Cleland, whose signature is on every Bank of England note, said she prefers to use cash for small transactions.

The 47-year-old also says predictions of the death of cash are premature, insisting that 'cash is definitely here to stay.'

'I personally don't really use contactless,' she told the Guardian.

'And it's only up to £30. So I use cash for lower transactions anyway and for big ones contactless wouldn't work.'

Ms Cleland said cash was used for 44 per cent of all transactions in 2016, the last year for which there is data available.

Most banks in the UK now issue their cards as contactless cards meaning they can be used for transactions of £30 or under without a PIN or signature.

Other methods of contactless payment include using smartphones, mobile phone apps, key fobs and wearable devices including watches and wristbands.

According to the UK Cards Association, one in four card payments are now contactless – totalling more than £3.3 billion every month.

Contactless cards are built using the same secure system as Chip & PIN with each including a range of security features to safeguard information and protect customers from fraud.

There have also not been any confirmed reports of money being stolen from a contactless card while still in its owner's possession, according to the association.

However, customers will get their money back from their bank if they are a victim of fraud.

The figure is down from 50 per cent the previous year and 68 per cent ten years ago, but she says there is still a growth in the 'total demand for cash.'

But her comments come as data shows the decline of cash is set to hit a turning point this year with cards overtaking notes and coins as the country's favoured payment method.

Britain will quickly blow past the point of 'peak cash' when card usage overtakes cash as the most popular way to pay.

It follows a massive rise in contactless payments following the introduction of bank cards that allow it for transactions of £30 or under.

It is estimated that only a fifth of sales will involve cash by 2026, according to the Guardian.

Re-disseminated by The Asian Banker from DailyMail.co.uk