Contactless: cashless card payment society in UK expected by half of Brits - is going cashless legal?

A survey has found that nearly half (48%) of people expect to see a completely cashless society within their lifetime.

According to Link, the cash access and ATM network, the proportion of individuals who never carry cash has risen to 15%, more than triple the 4% reported in 2019.

Link also said that the percentage of people anticipating a cashless UK has grown from just over two-fifths (41%) when similar research was carried out in 2019.

Despite this trend, 71% of respondents still rely on cash to some extent and reported using it within the past two weeks.

Link data shows that UK consumers are still withdrawing £209 million a day from cash machines. However, this is around a third, or £100 million, less than in 2019.

Nearly half (48%) of people said they would find a cashless society problematic, and in 2023, legislation was passed as part of the Financial Services and Markets Act, to protect access to cash.

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More than 2,200 people across the UK were surveyed by YouGov in April. Consumer group Which? said the number of UK bank branches to shut their doors in the past nine years had reached the 6,000 milestone on Friday last week (17 May).

There are various initiatives to help plug gaps in the cash access network, as bank branches close, and the 50th banking hub was recently opened.

Banking hubs allow banks to share facilities, and have a counter service operated by the Post Office, allowing customers to conduct routine banking transactions.

The Post Office also recently reported that cash transactions at its branches totalled a record £3.48 billion in April. The Post Office has an agreement with many banks, allowing their customers to carry out everyday banking over its counters.

John Howells, CEO of Link said: “Although the UK is on the way to becoming a low cash country, we now have legislation that will help Link maintain a national network of free ATMs and banking hubs and this will ensure that anyone needing to access cash can do so.

“But it’s no use having cash if the best goods and services are only available online and this is becoming a real problem for millions of cash-reliant consumers. The focus now needs to be on access to digital.”

Natalie Ceeney, chair of the Access to Cash Review, said: “Despite a massive growth in digital payments over the past five years, there are still millions of people who depend on cash, and half of the UK population concerned about the prospect of a cashless society.

“People need cash for a wide range of reasons, and the barriers to using digital payments are very real. We are certainly not ready to become a cashless society.”

The news comes after angry patrons criticised The Old Vine in Winchester for opting to go cashless, after a video circulating on social media showed a tense exchange between a customer and an assistant bar manager.

Read more: Winchester pub's cashless shift - is it illegal for a business to refuse legal tender?

The customer was attempting to pay for drinks at the historic inn with a £20 note, but the assistant bar manager insisted on a card or mobile phone payment.

Is going cashless legal?

Despite the customer’s protests, UK businesses - including private, independent ones like pubs - are not legally obliged to accept cash as a form of payment, and have the right to set their own terms of payment, including accepting only card or digital payments.

It is only if a business chooses to accept cash that they then must accept all legal tender, which includes Bank of England notes and coins.

The Payment Services Regulations 2017 does require businesses to provide clear information about accepted payment methods before a transaction takes place.

This means that if a business only accepts certain forms of payment, they must make this clear to customers before any purchases are made.