Millions of consumers across the UK face being left behind if we don’t plan properly for an increasingly cashless society.
That’s according to a report out today,‘Is Britain ready to go cashless? from the Access to Cash Review, that shows despite the increasing use of cards and electronic payments, approximately eight million people say cash is an economic necessity.
The report says that if we go cashless too quickly, exclusion risks include: threats to rural communities; social isolation; a rise in debt,; financial exploitation; and stigma towards those who rely on cash.
Cash use in the UK has halved in the past 10 years and is forecast to halve again in a decade’s time. In 15 years, one in every ten payments could be in cash say the authors.
The research shows that the UK is split on whether people believe there will be a cashless future in their lifetime. More than four-in-ten of Britons believe it will happen, compared to 38% who believe it won’t. However, all consumers acknowledge that as we stand today, there are significant risks to groups and the economy of going cashless.
Natalie Ceeney, Independent Chair of the Access to Cash Review: “The decline in the use of cash has been dramatic, and with rapid technology development and adoption this trend will continue. But for millions of people in the UK, cash is not a choice, it’s a necessity. If we don’t plan carefully for a world of lower cash, in other words, if we sleepwalk into a cashless society, millions of people will be left behind. As cash use continues to fall, we need to safeguard the use of cash for those who need it, and at the same time work hard to ensure that everyone can participate in this digital economy.”
Martin Lewis founder of MoneySavingExpert.com: “Many, especially the more affluent and technologically savvy, now live mostly cashless lives. That’s exactly why protecting access to cash is so important. We must learn lessons from the past. Take Directory Enquiries – technological changes saw demand drop, mainstream attention turned away, and prices rocketed – this left elderly and vulnerable who still access it ripped off. Access to cash is a far bigger issue. That’s why we must plan now, to protect those who need it in future.”
