Cash usage is fastest declining in the UK compared with the rest of Europe during coronavirus, according to research from Accenture. We’ve posted a blog recently on payment systems and the fast-changing identity requirements 9biometrics, etc) and how this will ultimately change what we think of as money itself (see the piece here).
UK cash usage has declined by almost 40 per cent from last year owing to the COVID-19 crisis prompting an accelerating use of digital payments. This compares to the European average of 30 per cent.
Of course, UK cash usage was already in decline, however, but coronavirus is accelerating the trend. The COVID-19 pandemic has – owing to the lockdown as well as fear over how the virus is transmitted – caused major disruption to the way people pay. As cash usage continues to decline, banks and merchants will see accelerated use of digital payments, prompting a shift in their payment revenues.
Sulabh Agarwal, Global Payments Lead, Accenture, said: “While the decline of cash in the UK isn’t new, there’s little doubt that lockdown and social distancing measures have pushed consumers who typically rely on cash into digital payments”.
Historical Performance And IFISA Process Guide
That figure is the result of over £21 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2019/20 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.