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.
“The latest BRC findings highlight the surge in cash usage over the past two years," said Mike Severs, Sales & Marketing Director at Volumatic, who supply cash-handling technology. "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. Retailers, restaurants, and leisure venues are encouraged to continue accepting cash to offer customers choice ensure they are accepting cash as a valid form of payment, offering customers the choice of how to pay. The growing trend of cash usage is something that can’t be ignored, especially as cash remains the second most used payment method after cards.
“Businesses that stop accepting cash risk excluding a significant portion of customers, including vulnerable groups, who may be dependent on cash for various reasons,” said 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."
A recent study by Which? found that the refusal of cash in retail stores left many customers unable to purchase basic necessities. While larger retailers have mostly reintroduced cash payment options, smaller businesses that refuse cash are losing out on important trade.
One of the primary concerns businesses have regarding cash is the time it takes to process. However, Volumatic offers intelligent cash handling solutions that streamline the process, ensuring cash is counted, stored, and reconciled quickly and securely.
Severs concluded: “Investing in Volumatic’s cash handling solutions means businesses can continue to offer cash payments with ease, boosting customer satisfaction and efficiency.”
