Despite the rise of digital wallets, new data shows that over half of Brits still pay with cash—and ignoring them could drive customers away.
Everyone knows the previous saying — money is king.
And whereas money transactions declined following the pandemic — main many to invest that the UK was turning into a cashless society — analysis from takepayments suggests money is making a comeback as a most popular alternative of cost.
Hospitality companies throughout the UK are divided on the matter. Whereas some have chosen to stay cashless following the pandemic, others have opted for a cash-only strategy.
It could possibly be a dangerous strategy, although. takepayments just lately surveyed 2,000 UK customers, aged 16-86, to find how buyers desire to pay in 2025. The outcomes present that selecting only one facet could price companies greater than they suppose.
Why you shouldn’t scrap money funds
For a lot of eating places, bars, and pubs, going cashless looks like a no brainer — no tills to steadiness, no money runs to the financial institution, and no wasted minutes counting notes and cash.
Nonetheless, not everyone seems to be on board. Many patrons have been vocal about their distaste for cashless venues. Earlier this 12 months, main excessive road chains like Itsu and Zizzi got here underneath hearth from clients for not accepting money funds.
In February, quite a few MPs referred to as for the federal government to implement laws to require all companies within the UK to simply accept money. One signee was Kate Osborne, Labour MP for Jarrow and Gateshead East.
“It’s a elementary proper that folks ought to be capable to use money as a authorized tender,” Osborne informed The Guardian. “I perceive that many individuals usually are not utilizing money a lot of the time, however there ought to be a alternative for all.”
And evidently sentiment is being shared, because the survey by takepayments reveals that 56% Brits nonetheless carry money and use it in-store — up 26% since 2023, and overtaking cell wallets because the second hottest in-store cost methodology.
Dodgy techniques are resulting in deserted purchases
One other drawback with going cashless is that expertise can allow you to down typically. In the event you don’t select your POS system fastidiously, you possibly can be left with a glitchy setup that crashes on the worst moments.
The implications will be dire, as analysis reported by Retail Tech Innovation Hub reveals that retail and hospitality corporations are shedding £1.6bn annually attributable to cost system failures, with 61% of outages occurring throughout peak buying and selling hours.
takepayments additionally discovered that 45% of consumers mentioned they’d deserted an in-store buy as a result of the system was down. 28% additionally mentioned {that a} technical failure made them doubt the protection of the enterprise’s techniques altogether.
John Clark, Product Supervisor at takepayments, advises that companies ought to have “common cost system testing” in addition to a backup plan to “forestall any surprising disruptions while additionally defending your gross sales and status.”
Shoppers need cost choices
Nonetheless, that isn’t to say it’s best to abandon your POS techniques and solely settle for money.
Even when all techniques are up and operating fantastic, the flexibility to decide on between paying with money or card is just extra handy in your clients.
Whereas the desire for money is turning into stronger, 52% of customers additionally informed takepayments that cash-only companies are “inconvenient”.
Moreover, amongst those that deserted their buy, nearly all of respondents (34%) cited a scarcity of money funds as the explanation, over even a dodgy cost system.
“The brand new information highlights the rising significance of providing a number of cost strategies to fulfill clients’ evolving expectations,” Clark added. “Whereas cell wallets and digital cost choices are seeing quicker and widespread adoption, conventional strategies like money and card funds are nonetheless essential.
“Failing to offer a wide range of cost choices may lead to misplaced gross sales, as clients could flip to different manufacturers that supply extra flexibility.”
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