Forecourt operators and other retailers have been urged not to abandon cash transactions after a study showed that its use in shops is up for the second year running.
Cash rapidly went out of fashion during the pandemic, as retailers encouraged card transactions over fears that notes and coins could help spread the virus.
However, a British Retail Consortium study, published earlier this month, finds that consumers are turning back to cash to help them manage household budgets amid the ongoing cost-of-living crisis.
Although cash still represents just one in five transactions, according to the research, the trend is one “that businesses need to pay attention to”, says Mike Severs, sales and marketing director at cash handling and money counting specialist Volumatic, who adds: “Cash remains a vital payment option for many consumers. It is universal, easy to accept, and doesn’t come with the risks of data breaches or cybercrime.”
The BRC Payments Survey shows that cash represented 19.9% of transactions in 2023, up from 18.8% in 2022. Debit cards remained far and away the most common method of payment, increasing to 62.0% of transactions (66.7% by spending). Taken together with credit cards, card payments accounted for over 75% of transactions and 85% of spending.