As part of a survey conducted by the British Independent Retailers Association (BIRA), which collaborates with over 6,000 independent businesses across the UK, it has been revealed that cash is still very much relevant in today’s market. The survey, carried out in August 2023 and with contributions from organizations such as the Federation of Independent Retailers, Digital Entertainment & Retail Association, and Association of Cycle Traders, sheds light on the ongoing importance of cash in the face of increasing card and digital payments. Out of the 650 independent retailers surveyed nationwide, a significant majority (65%) reported that cash still accounts for over 20% of their sales revenue.
Interestingly, it was found that many retailers (37%) take into consideration the need to avoid copper coins when setting prices, indicating their continued effort in catering to customers who prefer to use cash. However, a challenge arises when it comes to securing change, as 87% of retailers rely on acquiring coins and banknotes from bank branches. This poses a problem, considering the alarming rate at which these branches are closing.
Andrew Goodacre, CEO of Bira, emphasizes the importance of maintaining accessible cash options for customers, noting that while new payment technologies are gaining traction, the survey underlines the ongoing reliance of independent retailers on cash. Goodacre calls for the financial industry to ensure the availability of cash, rather than relying solely on retailers offering cash back as an alternative.
Protecting cash accessibility and payment choice is crucial, as not all customers are ready or able to pay by card. It is important to recognize that retailers serve entire communities, including those who have not fully embraced digital payment methods.
The survey also reveals that 38% of retailers would only consider stopping cash payments if there was a closure of a bank branch or Post Office in their area. This indicates that the majority of retailers have no immediate plans to go cashless, despite the challenges associated with accepting cash.
In summary, the survey conducted by BIRA highlights the ongoing significance of cash in the retail sector. While advancements in payment technologies continue to emerge, independent retailers continue to rely heavily on cash to serve their customers. It is of utmost importance to safeguard access to cash and payment options, as not all customers are prepared to transition to digital payments. The financial industry must commit to ensuring the availability of cash, rather than solely relying on retailers to offer cash back. This survey serves as a reminder that cash accessibility and payment choice should be protected for all customers.
