Is cash still king?
The new economic secretary to the Treasury, Emma Reynolds, has said that there are no plans to regulate businesses, whether big or small, to compel them to accept cash.
Concern has been raised about various shops and service firms not accepting cash and therefore excluding those who rely on cash to pay for things. While some countries appear to be planning to put rules in place that require essential services to accept cash, the UK does not seem as though it will be following suit.
Cards have been used for many years in the UK, with mobile payments by smartphone now becoming increasingly popular. 72% of 16-24 year olds now regularly use mobile payment services. This increase is reflected across all age groups, with 27% of those aged 45-54 now also regularly using this method.
However, cash still remains a popular choice for making payments. Cash was used in a fifth of shop transactions last year. After decades where use of cash has been shrinking, this is the second year in a row where cash use in shops has increased. It seems that many find that using cash helps them to budget better.
Should you accept cash?
The answer to this question really depends on who your customers are. If your customers are largely older or more value conscious, then it seems that these types of customers are more likely to rely on paying with cash. If you don’t accept cash, you may risk losing sales.
On the other hand, if you mainly sell to younger, more digital savvy customers, not accepting cash may have little effect on sales. This may help you save the costs and security issues involved in handling cash.
See: https://www.bbc.co.uk/news/articles/c20gevkx8gyo
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