High Street retailers are increasingly choosing to operate without cash, as businesses weigh up security risks, operational costs and evolving customer payment habits.
New research from the UK’s main ATM network, Link, suggests that 14% of shops have become cashless over the past year. The findings are based on a survey of small businesses conducted by its independent consumer council.
Despite this shift, cash still plays a significant role in everyday transactions. Around half of in-store purchases are still made using notes and coins, and 77% of High Street businesses surveyed continue to accept cash.
Among retailers that have moved away from cash, more than half made the change within the last 12 months. Businesses cited several reasons for the move. Around one in five pointed to concerns about counterfeit banknotes and fraud, while a similar proportion highlighted security risks such as theft, shoplifting and violence towards staff. Others said customer demand for cash had fallen.
The costs involved in handling physical money are also a factor. Many businesses face charges for cash deposits, particularly as bank branches close or reduce opening hours. Around half of retailers said they pay more than £50 each month to process cash deposits, while 15% pay over £200.
Payment habits are also changing across generations. Shoppers in their 20s and 30s increasingly rely on phones and cards, while older customers often prefer cash or want the option to pay in cash.
MPs on the Treasury Committee have previously warned that declining cash acceptance could create a two-tier system that disadvantages vulnerable consumers. Link’s report calls for improved access to cash deposit services for businesses and continued monitoring of cash acceptance across the UK.
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