A new survey has found that only 17% of people now prefer to pay by cash; some say they use cash for small payments and others say they have cash to "use up".
BusinessComparison has analysed the most recent payments data as well as surveying UK consumers to determine how often people pay using cash and which payment types are the most commonly used.
Its research finds that the UK recorded 30,914 million payments during 2020, of which, 20,722 million were cashless - making up 67% of total payments for the UK. This amounts to 455.32 cashless payments per person in 2020. At this time, debit card payments were the most popular, accounting for 17,522 million payments.
But the latest data from its survey of 2,000 UK consumers, conducted for BusinessComparison by OnePoll in January 2023, suggests that the use of cash has declined significantly in the past few years. It has found that just 17% of consumers now say they prefer to use cash. In fact, 1% of those polled said they had never used cash, suggesting that some younger consumers have completely embraced cashless payments.
Cash versus cashless payments
Consumers polled were asked when they had last paid using cash, where the cash was spent and what had prompted them to use cash rather than a cashless method. The findings show that 44% had used cash within the last week, suggesting that most people use a mixture of payment methods.
When asked where they had last paid using cash, hospitality venues came out on top - 11% of respondents said they had spent cash in a cafe or deli, while 9% spent cash in a restaurant. Other common locations for physical cash to be spent include: charity shops (9%), farmer's markets (7%), pubs (6%) and butcher's shops or fishmongers (5%).
Why do people use cash?
Asked about their motivations for using cash, the findings showed that:
- 29% said it was because they were only making a small purchase;
- A further 29% said they were using up cash they already had on them;
- 17% said they preferred paying with cash;
- 15% said the business only accepted cash;
- 7% cited technical issues with cashless payments.
Philip Brennan, founder and md at Business Comparison, said: "Cashless payments have quickly risen in popularity to become the most predominant form of in-person payment. As well as highlighting the global success of cashless payments, our research shows how cash payment trends vary in different parts of the UK, with Wales and the North West making notable contributions to the growing popularity of convenient cashless payments."
"It's clear that savvy UK consumers understand the benefits of cashless payment methods, making it essential for businesses to cater to their preferences."
Written by Rachel Miller.