Although digital payments are on the rise, cash continues to play a key role in everyday life, particularly for those who rely on it for financial control and security. While the use of cash is steadily declining in many countries, its significance has not
diminished—especially for individuals managing tight budgets or preparing for unforeseen emergencies.
Yet, with the decreasing access to cash and more businesses are opting not to accept it–concerns have emerged regarding the speed of this transition and the measures that can be taken to guarantee that cash is still accessible when people need it the most.
Number of ATM devices, UK and France
Number of ATM devices, Netherlands and Nordics
Source: PSE Payments Market Model
Cash is disappearing quickly
Recently the use of cash has steadily decreased in the UK and throughout Europe.
According to UK Finance, cash transactions represented only
14% of all payment methods in the UK in 2022, which diminished to just 12% in 2023. Similarly, surveys conducted by the European Central Bank indicate that cash constituted 59% of in-person Point-of-Sale (POS) transactions in the Eurozone in 2022, which
declined to
52% in 2024.
This decline is mirrored by a reduction in the number of physical bank branches and ATMs available to the public. In the UK, the number of cash machines has decreased by 37% over the last decade, a trend also observed in countries such as the Netherlands,
France, and the Nordic countries.
Big brands ditch notes and coins
With the use of physical cash steadily declining, an increasing number of UK retailers are transitioning to fully cashless operations. What began as a trend among small, independent cafés has now gained traction with well-known national chains.
Bakery brand Gail’s, with over 150 locations, has moved away from cash, as have popular restaurant groups like
Itsu and Zizzi. Pret a Manger also began testing cashless stores in 2024. The shift is part of a broader European trend—according
to the European Central Bank, 12% of consumer-facing businesses in the EU operated without cash in 2024, up from just 4%.
Don’t count cash out
The fast-paced move toward a cashless society has sparked two major concerns. First, with the cost of living on the rise, many people still turn to cash as a practical way to control their spending. The tangible nature of cash helps consumers stay within
budget, and that value is reflected in usage trends—in 2022,
19% of UK retail transactions were cash, up from 15% the year before, according to the British Retail Consortium. It marked the first increase in a decade and showed that cash still plays a vital role in day-to-day money management.
Whereas beyond budgeting, cash remains a critical fallback in times of uncertainty. As geopolitical tensions rise and economic instability looms, access to physical money becomes more than just a preference—it’s a form of security. Sweden
recently encouraged its citizens to keep cash at home in case of emergency. In late 2024, Norway went a step further, mandating that all businesses must accept cash. These signals serve as a timely reminder: cash still holds its ground as a tool for personal
agency and a safety net when it’s needed most.
Where do we go from here?
With the UK steadily progressing towards a cashless economy, concerns are mounting about ensuring continued access to physical currency, especially for essential services.
Recently, ATM deployment has come under increasing scrutiny in recent years. Although banks receive revenue through reverse interchange fees—payments made by card issuers when their customers use another institution’s ATM—this income stream is modest at
best. For many financial institutions and independent ATM operators, the business case is increasingly tenuous.
ATMs bring with them a host of ongoing costs: the logistical complexity of maintaining a steady cash supply (which, crucially, yields no return while in machines), significant hardware investments, and rising security expenses. These factors combined are
forcing the industry to reassess the sustainability of traditional ATM models, especially for free-to-use machines in lower-traffic areas.
One model gaining attention is the
Dutch “geldmaat” initiative. In the Netherlands, major banks collaborated to consolidate their ATM networks into a single, shared infrastructure. This cooperative approach allows them to maintain nationwide cash accessibility while distributing costs more
efficiently—and crucially, without diminishing the consumer experience.
Cash still counts—but are the rules keeping up?
The debate around mandatory cash acceptance is gaining traction in the UK. Campaigners are calling for legislation that would require all retailers to accept cash—a move aimed at safeguarding financial inclusion. But, while the intentions are clear, such
a sweeping mandate remains unlikely in the near term.
For many businesses, accepting cash introduces a host of operational challenges: increased security risks, the cost of managing physical change, and logistical hurdles tied to dwindling bank branch networks for deposits. From a policy standpoint, governments
have little incentive to champion cash. Its association with the informal economy and potential to erode tax revenues makes it an unattractive proposition in an era of transparency and digitisation.
A more pragmatic solution could lie in a targeted mandate. Requiring cash acceptance in essential sectors—like grocery stores, pharmacies, and retail—could provide a safety net for those who rely on cash, whether for budgeting control or during times of
crisis. This approach could help maintain access to vital goods and services without placing unnecessary strain on the broader retail ecosystem.
Phasing down, not shutting out - The future of cash
In an era dominated by digital wallets and contactless payments, the decline of cash may feel like a foregone conclusion. But while the shift is undeniable, the transition away from cash must be managed with care—particularly to protect those who still depend
on it.
For millions, cash remains more than just a payment method; it’s a vital tool for budgeting, navigating emergencies, and maintaining day-to-day financial control. Vulnerable groups—including the elderly, those on low incomes, or individuals without digital
access—often rely on cash as a lifeline in a system that increasingly assumes digital fluency.
To support these users, targeted interventions are key. Shared ATM networks, and partial mandates requiring cash acceptance in essential sectors like groceries and healthcare, offer a blueprint for preserving access while adapting to modern realities. Cash
may be in decline, but its role is far from over. Managing that decline—rather than accelerating its obsolescence—will be critical to ensuring an inclusive financial ecosystem that leaves no one behind.