Half of Britons Faced Cash Payment Issues Last Year, But Government Won't Mandate Cash Acceptance

Despite concerns that millions still depend on cash, the UK government has confirmed it will not force businesses to accept it.

On 28th January, Economic Secretary to the Treasury Emma Reynolds told the Treasury Committee that there are 'no plans to regulate businesses to compel them to accept cash, big or small.'

This comes as a parliamentary committee reviews whether businesses should be required to take cash payments, amid a growing shift towards card and mobile transactions. Lawmakers have raised concerns about the impact on vulnerable groups, including older people, those with disabilities, and individuals escaping domestic abuse.

The Rise of Card And Mobile Payments

Reynolds admitted that there are challenges, but she said the government is still working to ensure people have access to cash. She pointed out that the government plans to open many more places where people can bank as for many people, cash is still essential.

'I don't think we're anywhere near having a cashless society' and there was no plan for it,' Reynolds said. 'I certainly in my every day go to many businesses where they accept cash. We're not making plans for a cashless society.'

The Future Of Cash In The UK

While some countries, like Australia, consider rules requiring essential services to accept cash, Reynolds pointed to evidence from the Association of Convenience Stores. This evidence showed that 99% of their members still accept cash and have no plans to stop.

Reynolds essentially said this wouldn't happen in the UK. 'We have no plans to regulate businesses—big or small—to compel them to accept cash,' she said.

Reynolds emphasised that the UK is 'not anywhere near' becoming a cashless society, with convenience stores expected to accept cash for many years to come. However, she acknowledged that addressing digital exclusion remains crucial for those who may struggle to adapt to a less cash-reliant environment.

The BBC reports that card payments have become the dominant payment form, and consumers increasingly rely on their smartphones for transactions.

Cash remained a significant factor in retail transactions last year despite the rise of card payments, accounting for one-fifth of all purchases, according to the British Retail Consortium (BRC). This marks the second consecutive year of increased cash usage after a decade of decline, driven partly by consumers finding cash helpful for budgeting.

Survey Reveals Challenges Faced by Cash Users

However, a recent survey by the Link ATM network found that half of Britons had trouble paying with cash last year.

Data from the Link network of ATMs reveals a concerning trend: a 22% surge in car park locations that either refused cash payments or actively discouraged their use in 2024 compared to the previous year.

Following car parks, cafes and restaurants saw a 20% increase, while public transport and pubs both experienced a 10% rise in locations that either did not accept or discouraged cash payments. Inconvenience caused by cash payment issues increased significantly, with 59% of respondents experiencing it this year compared to 48% last year.

Graham Mott, director of strategy at Link, says: 'Mandating cash acceptance in other countries has not always been successful and many businesses have already moved away from cash as demand has fallen.

'However, there is still a huge reliance on cash alongside the growing risk of people being digitally excluded. It is important that there is debate about how this issue is addressed,' Mott said.