The Co-operative predicts that debit and credit card use will also decline

Cash could soon go the way of cheque books if predictions turn out to be true.

By the year 2025, about two thirds of transactions (65 per cent) will be carried out by contactless payment on mobile phone apps, according to a supermarket chain.

At present, the same proportion of transactions is paid for in cash, according to the Co-operative, but this looks set to decline as more and more people use the latest technology to shop and pay for goods.

The Co-operative predicts that debit and credit card use will also decline as consumers adopt quicker and more convenient ways of shopping.

The research suggests that the majority of transactions will be by mobile phone by 2025, “with bank cards and cash becoming a