Does cash payment go or stay?

By: Kátai Ildikó Date: 2021. 06. 07. 11:19

UK sees resurgence in cash use. The UK has seen a resurgence in the use of cash in the past week, according to cash management company Loomis UK.

Consumers like cash

Loomis, who collects and redistributes notes and coins on behalf of shops, restaurants, banks and other businesses across the UK, is reporting that cash volumes currently being spent are exceeding 70% of pre-lockdown levels according to Talking Retail article.

Simon Wood, commercial director of Loomis UK, said: “Last week we collected more cash from stores and businesses across the country than at any point this year, and on certain days cash use was over 73% of pre-Covid levels.

“Spending patterns and consumer behaviour have certainly changed over the past year, but as high streets re-open for business across the UK it’s clear that a significant proportion of consumers still prefer to use cash if they can. We are increasing our services to help meet this demand, to ensure that businesses can continue offering cash as a payment option to their customers.”

The news comes as a report by Worldpay predicts that cash will account for just 7% of in-store purchases in the UK by 2024, down from 27% in 2019.

Digital wallets are the future

In just one year, many consumer payment preferences crushed previous projections and unexpected growth occurred in markets like digital content and grocery delivery.

While digital wallets and buy now, pay later are taking the world by storm, legacy methods like cash and physical credit cards are beginning to take a backseat with consumers.

Smart innovation will continue through uniting the physical and digital while also securing payments that bridge geography.

2020 catapulted payments years ahead of projections. The Global Payments Report gives an in-depth look at how consumers are paying throughout the continents.

The Global Payments Report details which countries are set more in tradition and which are embracing new payment technologies.

Declining 42% from 2019, cash will be the least used traditional payment method in 4 years – forecasts the Wordpay report.