Convenience stores have welcomed the publication of a new report from the Commons Treasury Committee, recognising the importance of cash to convenience stores and their customers and calling for clarity on the costs of different payment methods.
In the report published on Wednesday (30), the Committee state that "cracks are beginning to show" in the UK’s cash system but they do not go as far as to recommend the mandatory acceptance of cash in businesses.
The report states, "There may come a time in the future when it becomes necessary for HM Treasury to mandate cash acceptance if appropriate safeguards have not been implemented for those who need physical cash."
The report also recognises the commitment by convenience stores and other small businesses to keep accepting cash for customers who need to use it to pay for goods and services.
In the report, the Committee expressed concern at a lack of transparency and competition in the payments processing market, and has called on HM Treasury to commission work to produce a model of costs of different payment methods, so that businesses of all sizes can make informed choices about the payment methods that they offer.
ACS chief executive James Lowman, who provided oral evidence to the Committee in December, said, “We strongly welcome this report from the Treasury Committee, which highlights the continued importance of cash to customers and the commitment that our sector has made to supporting customers who want or need to pay with cash.
“If we’re serious about keeping essential services available to local communities, we must enable retailers to accept payment for those services through a viable and sustainable economic model, but retailers are reporting increasing card costs that are inadequately monitored and regulated as well as challenges with storing and banking cash due to the fall in branch availability locally.
:The Payment Systems Regulator must do more to ensure that transaction and processing fees aren’t allowed to spiral out of control.”
Figures from the 2024 ACS Local Shop Report show that despite widespread acceptance of contactless, mobile and card payments, 99% of convenience stores accept cash as a means of payment in their business.
According to the Retail Data Partnership, cash represented 40% of value sales by payment type in March 2025, down slightly from 43% in March 2024. Cash also made up 47% of basket transactions in March 2025.
The full report from the Treasury Committee is available here: https://committees.parliament.uk/publications/47610/documents/248855/default/
