A quarter of Brits think that theyll have eliminated the need for physical currency by 2020, with 34 per cent expecting to be using a mobile device on a day-to-day basis to make payments within the next five years.

The figures come from the Lloyds Spending Power Report, conducted by consumer research firm Ipsos Mori, and also show that almost half of Brits (43 per cent) see contactless payments as the transaction method of the future.

The research comes as Lloyds prepares to launch Apple Pay availability to Lloyds Bank, Halifax and Bank of Scotland customers, enabling them to pay with their iPhone or Apple Watch on transactions up to £30.

“Consumers tend to adopt new products, technology or services quickly if theyre simple, intuitive and compelling, without needing extensive education, and Apple Pay is the likely catalyst towards a cashless society,” said Simon Black, CEO of the PPRO Group.

“More and more frequently, value is being placed on speed and convenience, which is one of the biggest benefits of mobile payments. It is this convenience culture that is a major driving force behind the cashless revolution. From using contactless cards to pay for a train journey, to a one-click shop on Amazon, quick and easy is winning the war.

“Mobile payments will become just one of many options taken for granted in the future, and while its still in its infancy, the explosive growth of contactless payments in the past 18 months means that in just a few short years from now, payments via smart devices are likely to be just as commonplace as paying by cash, debit or credit.”