In a growing debate over the right to use cash, several UK high street chains and restaurants are under scrutiny for their refusal to accept cash payments. The Payment Choice Alliance, a group advocating for the continued acceptance of cash, has labeled the rejection of cash by some stores as "completely unacceptable." This stance highlights a larger issue regarding the fundamental right of individuals to use cash as a legal tender for transactions.
The Payment Choice Alliance campaigns tirelessly to ensure the long-term future of cash services in an increasingly digital world. Their efforts have intensified as more stores, such as Gail's, Itsu, and Zizzi, opt to go cashless. Gail's, with over 150 outlets, cites environmental benefits as a reason for their cashless policy. However, this shift has sparked concerns about accessibility and inclusivity for those who rely on cash for budgeting and daily expenses.
The financial industry's push for "frictionless" purchases aims to simplify transactions, encouraging consumers to spend more freely. However, this ease of spending raises questions about the importance of cash in promoting thoughtful financial decisions. A system known as "cash stuffing," where individuals allocate cash into envelopes for specific spending categories, has gained popularity on social media platforms like TikTok, garnering hundreds of millions of views. This trend underscores the perceived benefits of managing finances with physical money.
Security experts caution against keeping large sums of cash at home due to safety risks. Despite these warnings, the ongoing cost of living crisis has driven more people to rely on cash for their day-to-day expenditures. Consumer groups note that while cash payments had been declining over the past decade, there is now an uptick in cash usage, attributed to economic pressures.
In response to these challenges, the UK government introduced regulations in September 2023 mandating banks and building societies to provide reasonable access to cash withdrawal and deposit services. This move aims to ensure that all citizens can continue to use cash conveniently.
Contrastingly, Sweden has been a pioneer in moving towards a cashless society, with some individuals even opting for microchip implants to facilitate payments for travel or food. However, in the UK, the reliance on cash remains significant. In 2023, approximately 1.5 million adults used cash for daily spending, marking a four-year high. Cash accounted for 6 billion payments in the same year, with the number of people primarily using cash rising from 900,000 in 2022 to 1.5 million in 2023.
A YouGov survey conducted in June 2023 reveals strong public support for maintaining cash acceptance, with 71% of British adults backing a legal requirement for businesses to accept cash payments. This sentiment reflects widespread concern that the shift towards card-only transactions may disadvantage those who are digitally excluded or choose not to engage in electronic banking.
Kate Osborne, a vocal advocate for cash usage, emphasizes its importance for budgeting, especially for individuals on low incomes.
“It is a fundamental right that people should be able to use cash as a legal tender. When you are trying to budget, particularly if you are on a low income, cash is a simple way of doing it.” – Kate Osborne
She also highlights the practical inconveniences faced by consumers due to limited payment options.
“You could be on a train for three or four hours, and you can’t even buy a cup of tea.” – Kate Osborne
The refusal of some businesses to accept cash has prompted criticism from various quarters.
“These businesses are letting down the public.” – Ron Delnevo
The debate over cash versus digital payments continues as societal and economic factors shape consumer preferences and business practices.