Cash is Back: 1 in 5 Shop Purchases Made with Cash!
Cash is Back: 1 in 5 Shop Purchases Made with Cash!.
According to retailers, the utilization of cash in stores has increased for the second consecutive year following a decade of decline.
According to the British Retail Consortium (BRC), cash in the form of notes and coins accounted for one-fifth of all transactions last year, as consumers reported that using cash facilitated better budgeting.
Additionally, the average expenditure per transaction experienced a slight decline, decreasing from £22.43 in 2022 to £22.03 in the previous year.
These findings were released following testimonies from charities to a committee of Members of Parliament, highlighting that various groups have been marginalized from accessing essential services and community facilities that have begun to reject cash payments.
Concerns were raised regarding women in abusive relationships, where their partners may utilize a bank account as a means of control or to monitor their movements.
Deidre Cartwright, policy manager at charity Surviving Economic Abuse, has stated that: "Oftentimes access to cash is their only means to actually accessing essentials for themselves and their children.
"It's a means for them to be able to escape an abuser, especially when that abuser can track them through a bank account, so it's incredibly important for their safety and survival."
Certain elderly individuals and those experiencing mental health challenges expressed a greater preference for cash transactions, as noted by the Treasury Committee. Additionally, some lacked the necessary digital skills or cognitive ability to rely solely on cards, computers, or mobile devices.
Leisure centers and universities are transitioning to a cashless system
Charitable organizations have indicated that exclusion is prevalent across various services and locations.
Wayne Crocker, the director of Mencap Cymru, noted that individuals could opt for a different café if one in the area chose to discontinue cash payments.
However, if the sole theatre in a town, or one affiliated with a university, were to eliminate cash transactions, it would result in some vulnerable individuals being unable to attend.
Ron Delnevo, representing the Payment Choice Alliance, mentioned that numerous services, including leisure centers, parking facilities, and food services on public transport, may also cease to accept cash.
"We have some heart-rending stories from families of people with disabilities, who feel that when they don't have cash accepted, it is robbing them of their self-esteem," he said.
"This was their money and they had the right to spend it, and they are being told their money is no good anymore. They take that as implying that they're no good anymore."
The BRC stated that all major retailers are dedicated to accepting cash transactions within their establishments.
Nearly 3 in 4 young people use mobile payments
Percentage regularly using mobile payment services, by age group, 2023
Age 16-24 – 72%
Age 25-34 – 60%
Age 35-44 – 38%
Age 45-54 – 27%
Age 55-64 – 16%
Age 65+ - 8%
Data released in July by the banking trade organization UK Finance indicated that a significant proportion of young individuals utilized smartphones or smartwatches for transactions.
Approximately 72% of those aged 18 to 24 frequently employed their digital wallets for contactless payments.
However, the report also revealed that the prevalence of individuals primarily relying on cash for everyday expenditures reached a four-year peak, attributed to the rising cost of living.
This finding was corroborated by the most recent data from the British Retail Consortium (BRC).
“Persistent inflation and the cost of living crisis continued to affect households across the country and many consumers used cash to budget more effectively," stated Chris Owen, payments policy adviser the BRC
The trade association is urging regulators to implement significant measures regarding the fees imposed by card companies.
Additionally, small enterprises have requested that banks maintain their branch operations or provide sufficient facilities for cash deposits.
Banking statistics indicate that cash continues to be the second most favored payment method, following debit cards.
The Financial Conduct Authority (FCA), the City’s regulatory body, has announced more stringent regulations to ensure that banks and building societies provide access to cash.
According to the new regulations, banks and building societies must address cash access deficiencies by considering alternatives such as banking hubs, ATMs, and Post Office services when contemplating branch closures.
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Cash is making a strong comeback as a preferred payment method, with one in five shop purchases now made using notes and coins. This resurgence highlights its value in helping people budget more effectively, especially in times of economic uncertainty. Cash continues to be essential for vulnerable groups, including those who face financial abuse, the elderly, and individuals with disabilities, offering them greater independence and security.
While digital payments rise, cash remains a vital, inclusive option, ensuring that no one is excluded from participating in everyday transactions. Its role in fostering financial autonomy and resilience remains irreplaceable.
