Major high street chains, including Gail’s bakery, Itsu, and Zizzi, are facing a growing backlash for refusing to accept cash, despite a resurgence in people relying on notes and coins for daily spending.
With the cost-of-living crisis squeezing household budgets, many shoppers are ditching cards in favour of hard cash to better manage their finances.
At the same time, recent banking app failures, which have effectively locked people out of their accounts and made it impossible to use debit cards at checkouts, have led people to think again about the need to hold cash in their wallets and purses.
In 2023, the number of adults using cash for everyday transactions hit 1.5 million – the highest in four years.
Campaigners are now demanding action, calling for laws to force businesses to accept cash.
Many shoppers are ditching cards in favour of hard cash (Image: Getty)
Ron Delnevo, chair of the Payment Choice Alliance, branded the refusal to take notes and coins as “completely unacceptable.”
He said: “The vast majority of the public want cash to be honoured as a payment,” he said. “These businesses are letting down the public.”
A YouGov survey conducted last June backs his claim, revealing that 71% of Brits support a legal requirement for retailers to accept cash.
Yet companies such as Gail’s insist that going cashless brings “environmental benefits,” reducing the need for collection and delivery services. Itsu, the fast-food chain, says it introduced cashless payments after a successful trial, while Zizzi claims card-only transactions create a “smoother and faster” experience.
However, Pret a Manger, which tested a cashless model, ultimately decided against a full rollout, keeping cash payments in most of its 490 UK stores to offer customer choice.
The battle over Britain’s cashless future is heating up in Westminster where Reform leader has been particularly critical of the banks, accusing them of trying to force customers and firms to switch away from real notes and coins.
He said: “When it comes, a cashless society will really hurt small businesses. We must fight against it.”
A parliamentary motion tabled last month demands legislation to protect cash payments. But the government has so far resisted, with ministers stating there are “no plans” to mandate cash acceptance.
Labour MP Kate Osborne, who supports the motion, told the Observer: “It is a fundamental right that people should be able to use cash as legal tender. When you’re trying to budget, particularly if you’re on a low income, cash is a simple way of doing it.”
She also warned that businesses rejecting cash risk disadvantaging millions who are either digitally excluded or prefer not to use electronic banking.
“We are seeing more and more retailers offering card-only payments, and it causes problems in constituencies like mine,” she said.
“I’ve been on trains before where the [card] system has gone down, and they couldn’t take payments. You could be stuck for three or four hours without even being able to buy a cup of tea.”
While cash use has plummeted over the past decade – from more than half of payments in 2009 to just 12% in 2023 – it remains the UK’s second most common payment method, behind debit cards. Six billion cash transactions were recorded last year alone.
Meanwhile, resistance is growing against the finance industry’s push for a cashless society. Ajay Banga, now president of the World Bank, made his stance clear in 2017 when, as CEO of Mastercard, he declared: “My enemy is cash.”
Countries such as Sweden, once pioneers of cashless payments, are now rethinking their approach amid mounting cybersecurity threats. Citizens there have been advised to keep enough cash at home to survive for at least a week in the event of a cyberattack or system collapse.
In the UK, millions still rely on cash. The Financial Conduct Authority (FCA) estimates around three million people depend on it for their everyday transactions. Last September, new rules were introduced to ensure banks provide reasonable access to cash withdrawal and deposit services.
A Treasury spokesperson acknowledged cash remains vital for many Britons but reaffirmed the government’s position: “We have no plans to mandate cash acceptance. Individual businesses can decide which payment methods they accept.”
However, pressure is mounting on retailers, and with public sentiment shifting, the fight to keep cash alive on Britain’s high streets is far from over.
Gail’s bakery, operating over 150 stores, justifies its cashless policy by citing environmental benefits, stating that eliminating cash collection and delivery reduces their carbon footprint.
Itsu, known for its affordable, nutritious food, says it decided to implement cashless payments following a successful trial. It argues the move streamlines operations and enhances customer experience.
Zizzi, part of The Big Table Group, said it adopted a cashless approach to provide the “smoothest and fastest” payment experience for customers.
Pret a Manger piloted cashless outlets but continues to accept cash in most of its 490 UK shops, prioritising customer choice despite finding that cashless service was faster.