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RSA report: One in five people would struggle in a cashless society

Almost half the population (48%) say a cashless society would be problematic, highlighting concerns around the ability to control finances and debt, digital fraud, privacy and increased isolation, according to new research published by the Royal Society for Arts, Manufactures and Commerce (RSA).

The report, ‘The Cash Census: Britain’s relationship with cash and digital payments’, has shown how a sudden shift to a cashless society would leave millions without the capabilities to engage in a digital economy and the control many have over managing their finances.


Funded by LINK, the UK’s cash access and ATM network, the research has found that one in five people (19 percent of the population, 10 million people) would struggle to cope in a cashless society, mirroring similar numbers from the Access to Cash Review in 2019.

Another 15 million people (29 percent of the population) said they could cope but it would be a major inconvenience, the survey noted.

The research has segmented the UK adult population into five groups based upon attitudes and behaviours around cash and digital payments. These include:

  • Cash dependents: An older segment that have a strong preference for cash (10 million adults)
  • Cash keepers: A younger segment that like the security of having cash (12m)
  • Cashless sceptics: The oldest segment whose scepticism about a cashless society runs deep (12m)
  • Cash occasionals: A younger segment that prefer to manage their money digitally but use cash occasionally or in emergencies (9m)
  • Cashless converts: A segment that strongly prefers digital payments and don’t see many benefits to cash (11m)

The research suggests that the majority of customers who are increasingly going cashless and embracing digital were doing so already. For many cash dependents, cash keepers and cashless sceptics, there is still a strong attachment to cash and one in seven of the population was using cash more because of the pandemic.

Cash remains especially vital for those on low incomes and is used by 15 million people to budget, the research has found. During the pandemic, the three parliamentary constituencies that saw the smallest reduction in ATM uses (Liverpool Walton, Bradford South and Birmingham Hodge Hill) are among the highest areas of deprivation across the UK.

Cash also plays an important part for many groups, especially the elderly, who are more likely to visit bank branches and post offices in person as an important way to connect to their community. Cash users in rural and remote locations are concerned that poor broadband and mobile connectivity will make it harder for them to go fully digital.

The research shows that for some there are still huge barriers using digital payments and that while there are many digital tools available, they simply do not work for some people. This includes concerns that forcing people on to digital can lead to a loss of control over their finances risking spiraling debts.

Overall, 23 million people say that using cash makes them feel more in control of their finances. This finding may reflect wider concerns about fraud and using technology with almost two-thirds (64%) concerned about fraud when making payments and 57% concerned about privacy.

“For millions of people, their relationship with cash is critical to the way they manage their weekly budget. Despite online banking and shopping becoming more common, our research shows the percentage of the population wholly reliant on cash is unchanged in the past three years. It’s vital that the dash to digital doesn’t disenfranchise anyone, especially with the cost-of-living crisis putting such significant strain on family finances right now,” the RSA’s Mark Hall, co-author of the report, said.

The recommendations in the report include:

  • The urgent need to introduce legislation, overseen by the Financial Conduct Authority (FCA) to ensure everyone can continue to access cash near to where they work and live and to protect the commercial cash system.
  • Encouraging further innovation in SME cash deposits to ensure it remains viable for businesses to accept cash.
  • Essential government services (both local and national) such as school dinners, council tax and utilities should ensure people wishing to pay by cash can do so.
  • Digital education needs to advance so all young people develop skills to manage their money digitally. The financial services industry can play a critical role here by working in partnership with charities.
  • The government must increase the speed of its national broadband and 4/5G roll out ensuring no region is left behind. The internet should be recognised as an essential utility and clearer rules should be established to protect people from being disconnected.

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