A third of UK adults expect payments by smartphone to be more common than by credit or debit cards by 2020, according to new research by Experian.
The global information services company found that while cash and card payments are still dominant, 33 percent of people think this will change in the next five years.
67 percent believe that cash will decrease in popularity, while 41 percent think that credit and debit card use will decline.
The study also found that a fear of fraud may be responsible for smartphone payments not being more common. 46 percent of respondents feared that their identity could be stolen online.
Meanwhile, 14 percent expect biometric payment system, including retina and fingerprint scans, will become more commonplace in the same period.
Derek Garriock, Head of Business Solutions, Experian UK and Ireland, commented:
"People will certainly be faced with more choice in years to come with the payment methods and providers they choose. Their decision will ultimately be based on the ability to pay for something, securely, anywhere and at any time at their own ease and convenience.
He added: "Security is a key concern for many individuals, who may be willing to adopt new ways of paying but have not yet done so, even amongst the younger generation. This is understandable considering that one in six adults has fallen victim to a cyber-attack via their mobile device."
The online survey polled a nationally representative cross-section of 2,004 UK adults in August 2014.
