The use of cash as a payment method in the UK has been decreasing rapidly in the last three years, accelerated by the Covid-19 pandemic, bank closures, the disappearance of ATMs, and the marketing efforts of big card companies. Debit cards (including contactless payments) have replaced cash as the most popular way to pay for goods and services. Cash use has fallen from 62% of payments in 2006 to 15% in 2021, but it remains the second most frequently-used payment method. While this trend is forecast to continue, it does not necessarily reflect the full picture, as the small stores sector proves different due to the lower value of individual transactions. Older age groups remain heavily reliant on cash. The Payment Choice Alliance campaigns for the continued acceptance of cash and is among those urging the UK government to legislate to ensure cash payments are universally accepted and supported by appropriate infrastructure.
Could cash be facing its demise?
