Record-breaking heatwaves and a packed summer of sporting events have driven a surge in cash use on Britain's high streets, with businesses depositing a record amount of cash through Post Office branches during the second quarter of the year.
According to the latest Post Office Cash Tracker, business cash deposits reached their highest-ever level, rising by almost £69 million year-on-year – a 2 per cent increase compared with Q2 2025 – as retailers and hospitality businesses managed higher takings during the busy summer trading period.
The figures also showed business cash deposit volumes increased by 6 per cent between May and June, exceeding 1.3 million transactions, while the value of business cash deposits rose by 3 per cent over the same period. Nearly two in three UK SMEs (59 per cent) rely on Post Office cash services, according to separate research by WPI Economics.
The Post Office said cafés, pubs and bars experienced particularly strong trading as warmer weather and major sporting events boosted footfall, increasing demand for local cash banking services.
Consumers also continued to rely on cash, with personal cash withdrawal volumes rising 4 per cent between April and June to almost 7 million transactions a month. The value of personal cash withdrawals increased by nearly 5 per cent compared with the same quarter last year.
The organisation said the increase in cash usage reflected everyday spending associated with the summer season, including purchases of drinks, snacks, family outings and travel. It added that cash continues to help households manage budgets while giving small businesses a convenient way to handle day-to-day cashflow.
Sarah Ellis, Branch Manager at Copperhouse Post Office in Hayle, CornwallPhoto: Post Office
Sarah Ellis, branch manager at Copperhouse Post Office in Hayle, Cornwall, said local businesses had deposited significantly more cash over the summer.
“We've seen a big increase in business cash deposits over the summer, and customers are withdrawing more cash for everyday spending,” she said.
“Many local small businesses, especially pubs and cafes, use the Post Office to deposit their takings... During the busy tourist season business owners don't want the hassle of travelling into town to bank their cash.”
Ben Hunter Woollard, head of banking at Post Office, said the figures demonstrated that cash remains an important part of many businesses' operations despite the growth of digital payments.
“These record business cash deposits show that cash continues to play a vital role for businesses across the UK, particularly during busy trading periods,” he said.
“For those businesses, being able to deposit cash quickly and securely on their local high street is critical.”
Separate research commissioned by the Post Office found that 59 per cent of small and medium-sized businesses use its cash services at least once a year, while 19 per cent access them every week.