One in high street businesses go cashless

One in seven high street businesses has transitioned to cashless payments in the past year, according to a survey by ATM and cash access network Link.

The research revealed that 77% still accept cash. Despite this shift, 46% of in-person transactions remain cash-based.

The biggest driver to becoming a ‘cashless’ business was fraud prevention (22%) followed by security concerns (21%) and lack of customer demand (20%). One-fifth (19%) also highlighted 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%) was also highlighted. 

Over four-in-five high street SMEs (82%) say they would value better access to deposit facilities, such as Post Offices and banking hubs.  The cost of handling cash is a major concern to a quarter of businesses, with 46% paying over £50 per month just to handle deposits and 15% paying more than £200 per month.  

Despite these pressures, the research shows that for many SMEs, cash continues to support financial control and provide a trusted and resilient payment option. Among businesses that accept cash, nearly half (46%) actively encourage its use. High street firms state avoiding card fees (55%), liquidity (50%), and speed of transactions (49%) as the main benefits of accepting cash.  

Nearly half of businesses (47%) 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, while over half also agree that the government should encourage digital payment adoption, reflecting a desire for a balanced approach.  

Joanna Wallace, Chair of LINK’s Consumer Council said “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.” 

Nick Quin, Chief Corporate Affairs Officer, LINK said “We are making sure that people can access their cash, and businesses can deposit their cash, in every corner of the UK. That is critical as more and more people choose to pay with their contactless card. This research shows that we must continue to give businesses the option to bank their cash locally, and keep a close eye on acceptance. But is also shows that businesses are committed to allowing people the choice of how to pay.”