Cash looks set to remain an important part of everyday life for much of the UK – both now and in the future, according to new research from Post Office exploring both consumer and micro trader views on the Future of Cash1. The study revealed that people of all ages continue to rely upon cash to make essential purchases and fund everyday spending, with nine in 10 (91%) wanting to retain the choice offered by different payments rather than moving to a cashless society in the immediate future.
The research suggests that more than half (53%) of the country rely upon cash as regularly as they do card (51%).Convenience is key, with a quarter (25%) preferring to have a choice in how they make different payments.
However, behaviour and approach to money management also plays a part, with 23% saying they feel more in control of their outgoings by making physical payments rather than using card or online methods. Nearly a quarter (23%) say they simply feel more comfortable using cash – with this true of both younger age groups (16-24 years old, 22%) and those who are older (those aged 55 and over, 30%).
Cash also provides much needed peace of mind for those with concerns about security of other forms of payment (10%), with 14% agreeing they feel more protected from the risks surrounding fraud.
Commenting on the research, Martin Kearsley, Director of Banking Services at Post Office said: “Despite the increased use and popularity of digital payments, our research highlights that the debate on the future of cash should not be about one form of payment replacing the other, but instead looking at how consumers balance their use of different methods alongside one another.
“People of all ages, and in communities across the UK, continue to rely upon the flexibility cash offers alongside other form of payments. With 95% using cash at various times to fund their spending on everyday essentials, it is vital that people have continued access to cash and choice in how and when they use it.”