Half of Britons Encouraged to Use Cash as Small Businesses Push Back Against Card Fees

In a notable shift from the increasing reliance on digital payments, half of Britons report being encouraged to use cash for purchases in the past two months, according to exclusive research from Link, the UK's largest ATM and cash access network. This trend is largely driven by small and independent businesses seeking to avoid card processing fees and maintain customer choice.

More than half of shoppers (54%) stated they were asked or encouraged to pay with cash in the eight weeks leading up to the survey. When prompted, three-quarters of these shoppers completed their purchase using physical money. The encouragement is most prevalent in sectors such as cafes and restaurants (22%), followed by independent shops (19%), hairdressers, barbers, and beauty salons (16%), and outdoor markets (12%). Pubs, retail shops, and supermarkets reported lower rates of encouragement, between 8% and 9%.

If asked to pay with cash, 69% of respondents indicated they would do so. Of this group, 38% would use cash if they had it readily available, while others would ensure they had cash on hand or visit an ATM to withdraw funds.

Regional variations show Northern Ireland with the highest exposure to cash encouragement, with 88% completing cash purchases. London, Yorkshire, and the North West also reported higher encouragement rates than the UK average. Scotland and Wales saw completion rates of 82% and 78%, respectively.

The preference for using cash as a primary payment method among Britons rose to 15% in September 2026, up from 13% in March 2026. Despite this increase, contactless cards remain the most popular payment method at 39%, followed by mobile payments at 31%.

Data from Link also indicates that 77% of small and medium-sized retailers across the UK continue to accept cash, with cash accounting for 46% of in-person transactions. Nearly half of these businesses actively encourage cash payments to mitigate card processing fees, citing improved liquidity and faster transactions as additional benefits.

Graham Mott, director of strategy at LINK, commented on the findings, stating, '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.' He added, '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 cash usage trends, following a review of cash acceptance by the Treasury Select Committee last year. The survey was conducted among 2,101 adults between September 10-11, 2026.

Separately, discussions are ongoing in the House of Lords regarding whether Britons should receive guidance on maintaining emergency cash reserves. Some European countries offer such recommendations, with the European Central Bank suggesting €70-€100 per person, or the equivalent of 72 hours' worth of spending. This contrasts with the UK, France, and Germany, which currently provide no such guidance.

Recently, a senior banking official admitted to stashing banknotes at home as a safeguard against potential disruptions to the banking system. The Bank of England has also announced plans for new wildlife-themed banknotes, which are expected to enter circulation in the coming years.

Mott further elaborated on the role of cash, noting, '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 acknowledged the growing issue of cash acceptance, with 23% of high street shops no longer accepting cash. However, he highlighted that for many, especially independent businesses, encouraging cash use is a strategy to support their margins and maintain customer choice, particularly when local ATMs or Post Offices are accessible. The visible increase in 'card payments only' signs may also be contributing to a desire among consumers to use cash when possible.