Cash still king, says new research

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A majority of transactions in convenience stores are still made in cash despite the increase in card payments during the pandemic, says new research.

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But there is a geographical divide in the UK, with southern counties less reliant on cash than those further north, adds the PayPoint data.

County Down in Northern Ireland is the most cash reliant county, with 69% of purchases still made in cash, while in Oxfordshire that figure is just 46%.

More than two-thirds (67%) of all purchases in PayPoint’s network of convenience stores were made in cash in the financial year 2020/21.

The new research combines PayPoint sales data, looking at cash as an overall percentage of transactions in its network of 28,000 stores, with regional attitudinal data of how many people say they are reliant on cash.

Of the 48 UK counties included in the study, 43 have an overall cash reliance score of above 50%, indicating that the need for cash by millions of people to support day-to-day expenditure is still of major importance across the whole of the UK.

The regional divide is evident with the most cash-reliant counties spread across the north of England, the West Midlands and the devolved nations.

Together with County Down, County Antrim, Lanarkshire, Merseyside and County Durham all feature highly in the ranking.

The data also indicates that two thirds of all transactions in PayPoint’s network of convenience stores – which have boomed in popularity as people shopped locally during the pandemic – are made in cash.

One in five (21%) people across the UK still use an ATM two to three times a week and 64% of British people think more should be done to protect cash, rising to 67% in Scotland.

Nick Wiles, chief executive of PayPoint, said: “Among continued sensationalism and scaremongering over the decline of cash, it is more important than ever that we recognise its continued importance to communities around the UK.

“Despite the rise of digital payments during the pandemic, we must not forget that many people are still reliant on cash, and they are also often the most vulnerable in society. “