Cash Usage Sees Unexpected Boost in UK as Businesses Encourage Physical Payments

Despite the widespread adoption of digital payment methods, cash usage in the United Kingdom is experiencing a notable resurgence, driven by small businesses actively encouraging customers to pay with physical money. According to exclusive research from Link, a significant portion of Britons have been prompted to use cash for transactions in recent months.

More than half of shoppers surveyed (54 percent) reported being asked or encouraged to pay with cash within the past eight weeks. When this encouragement occurs, approximately three-quarters of these shoppers complete their purchase using physical money. The practice is most prevalent among small or independent businesses, with cafés and restaurants leading the way at 22 percent, followed by independent shops at 19 percent and hair salons, barbers, and beauty salons at 16 percent.

In a hypothetical scenario, 69 percent of respondents indicated they would opt to pay with cash if requested. Of this group, 38 percent stated they would use cash if they had it on hand, while the remainder would either ensure they always carry cash for such instances or would withdraw cash from an ATM to complete the purchase.

Northern Ireland reported the highest rate of cash encouragement, with 88 percent of respondents completing a cash purchase as a result. London, Yorkshire, and the North West also showed higher rates of cash encouragement than the UK average, while Scotland and Wales recorded completion rates of 82 percent and 78 percent, respectively.

Preference for using cash as a primary payment method among Britons rose to 15 percent in September 2026, up from 13 percent in March 2026. Contactless cards remain the most popular choice at 39 percent, followed by mobile payments at 31 percent.

Further data from Link indicates that 77 percent of small and medium-sized retailers across the UK still accept cash, with cash-based transactions accounting for 46 percent of all in-person sales. Nearly half of these businesses actively encourage cash payments to circumvent card processing fees, citing improved liquidity and faster transactions as additional advantages.

Graham Mott, director of strategy at LINK, highlighted the ongoing relevance of cash. 'These results show cash remains a practical choice for millions and that many small businesses are actively encouraging its use, making a resilient ATM network more important than ever,' Mott stated. 'It's also fascinating to see when prompted, most people are happy to pay with cash and still choose it for certain retailers and services.'

The report was commissioned by Link due to a perceived lack of data on the subject, following a review of cash acceptance by the Treasury Select Committee. The survey included responses from 2,101 adults between September 10-11, 2026.

Concurrently, discussions are underway regarding potential guidance for Britons on maintaining emergency cash reserves. The House of Lords' National Resilience Committee is examining the UK's approach to physical cash. Some European countries offer recommendations, such as the European Central Bank suggesting €70-€100 per person for 72 hours of spending, while the Netherlands recommends €70 plus €30 per child. Sweden advises a week's worth of reserves, and Finland suggests 72 hours. In contrast, Britain, France, and Germany currently provide no such guidance.

Concerns about digital system reliability have prompted some individuals to prepare for potential disruptions. Notably, a senior banking official admitted to stashing banknotes at home for personal and family security in the event of a banking system shutdown.

The design of future banknotes has also been a topic of discussion, with the Bank of England announcing new wildlife-themed notes set to enter circulation in the coming years.

Mott further commented on the broader payment landscape: 'Cash may no longer be king for most age groups, but it forms part of a healthy payment system. When card machines stop working, cash will always work. It's why many people take out cash as a safeguard against digital systems going down.' He also acknowledged the challenges of declining cash acceptance, noting that 23 percent of high street shops did not accept cash earlier in the year. 'For many it's easier and avoids issues such as theft or having to travel to the nearest bank branch,' he said.

'Yet, for others, the decline of cash use is problematic day to day, so much so that many independent shops are encouraging cash use by customers, when possible,' Mott added. 'It looks as if in most cases people are happy to help the store, pub or café and understand the reasons as to why they might prefer cash. Many people are aware of the challenges facing local independent businesses and therefore they want to support them as much as they can. Card payments eat into margins, whereas paying in cash doesn't. If there's a local cash machine or Post Office nearby, then paying in cash can be in the greater good. Perhaps because we now see so many signs saying card payments only, people want to be able to use cash when they can too.'