The new Economic Secretary to the Treasury, Emma Reynolds, has confirmed that there are no plans to introduce regulations requiring businesses—whether large or small—to accept cash payments.

Concerns have been raised about the growing number of shops and service providers refusing cash, which can exclude those who rely on cash for everyday transactions. While some countries are considering laws to ensure essential services accept cash, the UK does not appear to be following this trend.

Card payments have been widely used in the UK for years, and mobile payments via smartphones are becoming increasingly popular. 72% of 16-24 year olds now regularly use mobile payment services. This trend is also evident among older age groups, with 27% of those aged 45-54 now using mobile payments regularly.

However, cash remains a widely used payment method. One in five shop transactions last year was made using cash. After decades of decline, this marks the second consecutive year in which cash usage in shops has increased. Many people find that using cash helps them manage their budgets more effectively.

Should Your Business Accept Cash?

Whether or not to accept cash largely depends on your customer base:

  • If your customers are older or more budget-conscious, they are more likely to prefer paying with cash. Not accepting cash could result in lost sales.
  • If your business serves younger, tech-savvy customers, refusing cash payments may have little impact on sales. Going cashless can also help reduce costs and security concerns associated with handling cash.

As payment preferences continue to evolve, businesses should consider their customer demographics before deciding on a payment policy.

See: BBC News