A new study by the British Retail Consortium (BRC) has revealed that cash usage in shops has risen for the second consecutive year, as more consumers turn to coins and notes amid the ongoing cost-of-living crisis.
The research found that one in five transactions last year were made using cash, as shoppers cite it as an effective budgeting tool.
The rise in cash usage follows recent data from major surveys, including one from payments platform Paysafe, which confirms that payment choice remains a key factor for UK shoppers, with many valuing the availability of cash. This is further supported by new laws introduced by the Financial Conduct Authority (FCA) to protect access to cash through an increase in banking hubs and Post Office facilities.
Mike Severs, sales & marketing director at cash handlers Volumatic, said: “The latest BRC findings highlight the surge in cash usage over the past two years. It’s a trend that businesses need to pay attention to. Despite tough times, cash remains a vital payment option for many consumers, and we can help businesses process it more efficiently. Cash is universal, easy to accept, and doesn’t come with the risks of data breaches or cybercrime.”
“Businesses that stop accepting cash risk excluding a significant portion of customers, including vulnerable groups, who may be dependent on cash for various reasons,” added Severs. “The benefits of cash are clear - it doesn’t rely on technology, can be more secure for certain demographics, and helps businesses avoid data breaches.”
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