While operators await the ability to accept card payments directly on machines, as promised in the gambling review, the British Retail Consortium has revealed that cash use in shops has increased for the second year running – emphasising the importance of offering a range of payment options to customers.
Cash use in shops increased for the second consecutive year, reversing a decade-long decline, according to the British Retail Consortium (BRC).
Last year, notes and coins accounted for one in five transactions, as shoppers found cash to be an effective tool for managing their budgets. The average spend per transaction also decreased slightly, from £22.43 in 2022 to £22.03 in 2023.
Figures from the banking trade body UK Finance showed a rise in the number of people relying on cash for daily expenses, reaching a four-year high. This trend coincided with persistent inflation and the ongoing cost-of-living crisis.
Chris Owen, payments policy adviser at the BRC, explained: “Persistent inflation and the cost-of-living crisis continued to affect households across the country and many consumers used cash to budget more effectively.”
Despite the growing use of digital wallets among younger generations – 72 percent of 18 to 24-year-olds regularly use their smartphones or watches for payments – cash remains the second most popular payment method in the UK after debit cards. The BRC emphasised that all large retailers remain committed to accepting cash in their stores.
However, the trade body and small businesses have voiced concerns about the costs associated with card payments. They have called for regulators to take more meaningful action to address the fees charged by card companies, which are placing increasing financial pressure on retailers. Small businesses have also urged banks to maintain physical branches or provide adequate facilities for cash deposits.
Access to cash can be a challenge for amusements operators, particularly those in small seaside resorts where banks have been closing up shop, meaning the operator has to drive significant distances to refresh cash stores. The cost associated with card payments may also receive more scrutiny from the industry as more and more operators implement cashless solutions, and especially if the prohibition of card payments directly to machines comes to an end – as the government has promised it will in the gambling review. While this will further increase the number of card payments made by customers, the BRC’s report shows why very few operators will plan on ditching cash payments altogether.
Cash may no longer be cock of the walk, but it’s not a feather duster just yet.
