Most UK consumers still want the option to pay in cash
The majority of UK adults value being given the option to pay in cash, according to latest research by LINK, the UK’s cash access and ATM network.
Whilst contactless card and mobile phone payments represent the most the popular ways to pay (42% of adults stated a preference for contactless card payments, and 24% for digital wallets such as Apple or Google Pay), 81% of adults think that being given the choice to pay in cash remains important.
This reflects a preference for choice across the payments landscape and challenges the assumption that the emergence of new and innovative ways to pay will put an end to the UK’s cash economy. Overall, nearly three-quarters (73%) of adults said that they had used cash to pay for a purchase in the past two weeks, consistent with cash spending statistics since February 2020.
Cash is as important, if not more important, for the youngest generation as it is for other adults
Cash is typically thought of as the preserve of older generations, vulnerable people and the financially excluded, and the phasing out of cash as the younger, more digitally literate generation grows up is often assumed.
Whilst the importance of cash for the over 55s is reinforced by this latest research (87% think that it is important to be given the option to pay in cash), additional demographic trends emerge, revealing that cash is as important, and in some cases more important, for the youngest generation of adults as it is for other demographic groups.
Among 16 – 24-year-olds, 17% stated that cash was their preferred method of payment, a comparatively greater preference for cash compared to erstwhile millennials with only 13% of 25–34-year-olds and 11% of 35–44-year-olds. More than three-quarters of 16–24-year-olds stated the importance of being given the option to pay in cash, consistent with average support amongst those aged 25 – 44. This may reflect the fact that many younger adults, quite often students, live on tighter budgets or less dependable income streams, therefore budgeting using cash continues to be the most effective way of managing their money.
Other key findings include:
- The most frequent ATM withdrawals are for values under £50.
- More cash is withdrawn from ATMs for future, undetermined usage than is withdrawn for specific, immediate usage, suggesting that cash is increasingly seen as a reliable back up method of payment rather than a primary method of payment.
- The majority of cash withdrawn from ATMs (59%) is kept in a wallet or purse until it is needed. Similarly, 22% of cash withdrawn is kept at home for use in case of an emergency.
- Just 20% of cash withdrawals are spent immediately. A further 26% of withdrawals are made for immediate use in a location that does not accept cards.
Graham Mott, director of strategy, LINK: “The recent CrowdStrike outage was a reminder to everyone that we all rely on cash when digital payments fail. LINK’s research shows that the vast majority of consumers both young and old use cash and want that option maintained. That’s why the recent legislation by government to protect cash is so important.”
Cash continues to be valuable as it is resilient but as the research shows, it is still important to helping people who live on a budget. It may be surprising for many that it’s still so important for younger adults in particular.”
