UK Sees a Rise in Cash Payments
Cash payments across the UK rose for the first time in a decade last year, with around one million people using it for most transactions. Financial experts suggest banknotes and coins are helping Brits weather cost of living challenges.
Data from UK Finance shows the number of transactions using cash increased by seven percent in 2022 compared with the previous year, reaching around 6.4 billion payments. This is around 14 percent of total payments, making cash the second most used option behind debit cards, which have also seen an increase in use and account for 57 percent of transactions.
There is a wide variety of payment methods available in the UK and each provides specific benefits to the people using them. During 2022 we saw increased use of contactless, online banking and mobile payments, although cost-of-living challenges meant that some people preferred to use cash to help with their budgeting.
The Post Office network, which offers banking services across Britain, said cash transactions peaked this year in July and August, continuing an upward trend that started in 2022, suggesting the popularity of cash has been sustained.
This news follows the announcement of forthcoming legislation requiring banks and building societies to provide free cash withdrawal facilities within three miles of consumers and businesses. While further details have yet to be confirmed, it has been reported the Financial Conduct Authority will be empowered to fine companies failing to maintain adequate availability of cash.