- Due to the cost of living crisis, more people are only spending cash.
According to research, the number of people primarily using cash for day-to-day spending reached a four-year high during the cost of living crisis.
According to UK Finance, in 2023, approximately 1.5 million adults primarily used cash, marking the first increase since 2019.
Adrian Buckle, head of research for UK Finance, stated: This probably reflects how much cash was used to manage a limited budget.”
However, the majority of young people paid for goods with smartphones or watches, according to data from the banking trade body.
Almost 3/4 (72%) of 18 to 24-year-olds consistently utilized their computerized wallets to make contactless installments.
Their folks and grandparents were undeniably less inclined to spend similarly.
Only 8% of people over 65 used mobile contactless payments on a regular basis, while 27% of people between the ages of 45 and 54 did so.
Mr. Buckle stated that the older age groups would eventually catch up.
Nearly 3 in 4 young people use mobile payments
Percentage regularly using mobile payment services, by age group, 2023
He stated that “one-third of adults are now making these at least once a month, with scope for usage to increase further,” and that “mobile contactless payments are growing rapidly.”
Not at all like cards, which have a contactless spending breaking point of £100, versatile contactless installments have security elements, for example, unique mark innovation which implies there is no cap.
Additionally, card data should not be compromised by fraudsters’ interceptions.
However, separate statistics indicate that one phone is stolen every six minutes in London, and there are warnings about thieves “shoulder surfing” before stealing phones.
Over the past ten years, there has been a steady decline in cash payments, especially as more and more people use contactless cards for everyday purchases.
The impact of sharply rising prices, constrained finances, and closely watched budgets was cited as the cause of a slight rise in 2022.
According to UK Finance, cash use decreased once more the previous year, to 12% of all payments, and 22 million consumers primarily did not use cash.
Nonetheless, the examination proposes 1.5 million fundamentally involved cash in 2023, up from 900,000 the earlier year, mirroring the continuous effect of the cost for many everyday items on those with restricted earnings.
More people turned to mainly using cash in 2023
Adults mainly using cash for day-to-day spending, millions
An estimated three million people still use cash as their primary mode of payment, trailing only debit cards.
The Financial Conduct Authority (FCA), which oversees the City, has announced tighter regulations to ensure that banks and building societies provide access to cash.
It stated that its new regulations would require banks and building societies to use banking hubs, ATMs, and Post Office facilities to fill cash access gaps when considering branch closures.
Tulip Siddiq, Economic Secretary to the Treasury, stated: I applaud the FCA’s new regulations because cash continues to be an essential part of the lives of millions of people and businesses across the nation.
“Our commitment to roll out 350 banking hubs will also assist in facilitating access for local communities to the essential banking services that people rely on,”
