Financial experts believe that the resurgence of cash in the UK can be attributed to the cost-of-living crisis. In this time of austerity, cash has become the clear winner in helping Brits navigate the numerous challenges they face. According to Mike Severs, the head of sales & marketing at Volumatic, the data from UK Finance, along with the statistics from The Post Office, supports the notion that cash is still very much alive and well, and its usage is continuing to rise. He emphasizes that while other forms of payment are also increasing in popularity, the key finding is that consumers still want the option to pay with cash.
Severs goes on to explain that their company has witnessed an increased demand for cash handling solutions, with some customers even reverting to cash payments after initially going cashless due to public demand and potential profit loss. As cash handling experts, they can assist businesses in finding the most suitable cash handling solution to meet their specific needs. This, in turn, will help businesses make cost savings and combat the rising credit card fees. Severs emphasizes the importance of offering customers choice and finding the most efficient way to process daily takings.
The benefits of cash are not only recognized by consumers but also by businesses. Many businesses are once again accepting cash as it helps prevent the risk of losing customers, and increased cash transactions can reduce the escalating fees charged by credit card companies for processing card transactions. In fact, the number of cash transactions increased by 7% from 2021 to 2022, reaching a total of 6.4 billion payments made in physical cash. Although cash usage levels have not fully returned to pre-pandemic levels in some areas, this rise in demand for cash has been echoed by The Post Office network. They have noticed a significant increase in cash transactions in 2022, which has continued into this summer, with peak volumes in July and August 2023.
The fight against a cashless society in the UK is already underway, as evidenced by the recent announcement of forthcoming legislation requiring banks and building societies to provide free cash withdrawal facilities within a three-mile radius of consumers and businesses. Severs believes that cash usage has been a subject of debate for many years, and in 2023, it has elicited passionate discussions from both businesses and consumers. He reiterates that as cash handling experts, their company can help businesses process their cash takings in the most efficient manner, as accessibility to cash and cash usage continue to improve. Severs concludes by stating that now is the time for businesses to embrace cash once again and offer their customers choice.
[Read more about how cash remains the preferred payment method for independent retailers.](https://www.talkingretail.com/news/industry-news/cash-still-king-for-uks-independent-retailers-26-09-2023/)