The days of fishing coins or notes out of your purse or wallet are already fading fast.

But soon bank cards will find themselves going the same way, with new research predicting that contactless payments on mobile phones will have outstripped cash within a decade.

A report by The Co-op on consumer behaviour and shopping trends showed that nearly two thirds (65%) of all transactions are paid for with cash.

Cash is still king as people enjoy carrying money, however we predict that by 2025 mobile payments will overtake cards and cash

Cheryl Marshall, retail chief information officer, The Co-op Food
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But contactless use has trebled in a year, The Co-op said, with its latest figures showing that contactless – using bank cards or technology such as Apple Pay – topped almost 11m transactions in a month. That figure was up 1.4m (15%) on the previous period.

It predicted that by 2025, 65% of all transactions will be by mobile phone, with bank cards and cash becoming a thing of the past like cheque books.

Cheryl Marshall, retail chief information officer at The Co-op Food, said: "We've seen incredible growth in contactless and it is the payment medium of tomorrow, although mobiles are ringing the changes.

"The new technology is perfect for convenience stores as shoppers buy fewer items and speed is important to them.

"Cash is still king as people enjoy carrying money, however we predict that by 2025 mobile payments will overtake cards and cash."

Despite time savings that contactless brings, a survey of 2,000 shoppers showed some are still reluctant to embrace the technology.

Mobile contactless payments are on the up, but consumers still opt for chip and pin for higher value transactions. Image by tuthelens/

The Co-op’s payment data shows that despite the spending limit being raised to £30 on contactless payments, shoppers still opt to use chip and pin rather than contactless for transactions of more than £10.

The research suggests that trust is the main barrier when making a more expensive purchase, with the ease of contactless losing its appeal once the spend hits double figures.

The average basket spend for contactless in convenience stores is £8.66, compared to an average of £18.16 using chip and pin.

Similarly, the average spend on customers buying fuel using contactless is £9.38, compared to £23.28 for a chip and pin purchase.

A spokesperson from the Royal Mint said: “The demise of cash has been predicted for a long time but it remains the currency option the general public turns to for confidence, convenience and security.

“Cash is still the most prominent payment method for UK consumers and global demand for coins is as strong as ever.”