One in seven UK high street shops went cashless in last year - survey

Despite the rise of card and phone payments, 46% of in-person transactions are still cash-based, according to a survey of 1116 firm from the Link ATM network, which notes that the percentage is higher in sectors such as independent retail, cafés and pubs, convenience stores, and launderettes.

And, while cash is still accepted by 77% of small and medium sized retailers, some 14% have gone cashless in just the last year.

A recent inquiry by the Treasury Select Committee into cash acceptance warned that without action, the UK risks creating a two-tier high street, where some customers are effectively shut out of shops, cafés, and local services because they cannot pay digitally.

The biggest driver to becoming a ‘cashless’ business is fraud prevention (22%) followed by security concerns (21%) and lack of customer demand (20%). One-fifth (19%) also highlight that digital payments made bookkeeping and accounting much easier to manage. A lack of deposit facilities (13%) and the closure of the local bank branch (11%) is also cited.

Over four-in-five high street SMEs (82%) say they would value better access to deposit facilities, such as Post Offices and banking hubs. Nearly half of businesses want to protect the choice to accept cash in the future, and over half believe the decline in cash use is harmful to the high street.

A majority (53%) of businesses support mandating cash acceptance. The Australian government introduced rules at the beginning of the year that require most fuel and grocery retailers to accept in-person cash payments of $500 or less made between 7am and 9pm.

Joanna Wallace, chair of Link’s Consumer Council says: "It’s becoming more common to see a sign next to the till in  a shop or cafe saying “card only” - twenty years ago it may have been ‘cash only’.  The ways we want to pay are changing and so are the ways we are able to pay - this research shows the complex range of factors that affect any business owner’s choice of payment types. But the continued importance of cash on the high street rings true through it all.”