Why cash payments still matter

Contactless payments might be quick and easy, but cash still matters - and it’s not going anywhere anytime soon.

According to ATM network LINK, cash is still the most trusted way of paying, as it gives people a sense of control over their spending.

In particular, it helps them stay within a budget and understand what things really cost.

As a result, many people aren’t planning to dispense with cash just yet, despite so many other payment options being available.

In fact, 63% of people polled by LINK said they don’t expect go completely cashless in the next year.

Cash feels safer

Many people also say they feel more secure with physical notes and coins in their pockets.

For example, 65% of those polled by LINK said they feel cash protects them from fraud.

By contrast, just 22% said the same about contactless payments and just 18% felt this way about digital wallets.

Meanwhile, 65% said cash gives them confidence that nothing would go wrong, such as a payment outage.

Most adults have used cash in the last fortnight

Nearly seven in ten adults in the UK said they’ve used cash to pay for something during the last two weeks.

More than a quarter have spent cash in supermarkets, while a similar number have used it in convenience stores.

But unsurprisingly, physical notes and coins are most popular among older people.

One in four people aged 55 and above said they preferred cash, compared with less than one in 10 25 to 34-year-olds.

Retailers trying to put people off paying with cash

Despite the continuing popularity of physical notes and coins, many people have come up against problems when trying to use it.

More than half of the people polled (52%) said that in the last two months, they’ve been somewhere that either didn’t accept or discouraged the use of cash.

Significantly, over eight in ten (82%) think all shops should accept cash.

And more than three-quarters (76%) believe having the option available is important, partly because digital options might not work.

Meanwhile, many said they’re worried that not accepting cash could lead to vulnerable groups being excluded.

“Cash remains a critical part of the UK’s payment landscape,” said Graham Mott, director of strategy at LINK.

“While digital payments are growing, cash continues to play a vital role in financial inclusion, budgeting and consumer choice.”

Brits building cash safety net amid economic uncertainty

The findings come after the Bank of England (BoE) reported an increase in the number of banknotes currently circulating, despite a drop in the number of cash transactions.

Victoria Cleland, the BoE’s chief cashier, believes this is because many people want to have a safety net in place at a time of economic uncertainty.

The trend also comes hot on the heels of several high-profile cyber-attacks on businesses, as well as a power outage in Spain and Portugal that led to bank and payment systems going down.

Could shops be forced to accept cash?

Businesses aren’t currently required by law to accept physical notes and coins.

But according to the Treasury Committee, this means they can refuse cash with no legal duty to accommodate people’s varying needs.

As a result, the group of MPs recently called on the government to improve the monitoring and reporting of cash acceptance across the country.

Otherwise, it believes this risks “creating a two-tier system where vulnerable groups become excluded from community spaces such as leisure centres, theatres and public transport”.

So far, the government has ruled out requiring shops and service providers to accept physical notes and coins.