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 this payment type. While some countries appear to be planning to put rules in place that require essential services to accept cash, it does not seem that the UK will be following suit.
Cards have been used for many years in the UK, with mobile payments by smartphone 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 also regularly using this method.
However, cash still remains a popular choice for making payments. Bank notes and coins were used in a fifth of shop transactions last year. After decades during which the use of cash has reduced, this is the second year in a row when cash use in shops has increased. It is thought that this may be as means to help with budgeting.
Should shops accept cash?
Whether or not shops should accept cash really depends on who their customers are. If they are largely older or more value-conscious, then it seems that they are more likely to rely on paying with cash. In this case, only accepting card payments may mean a risk of losing sales.
On the other hand, if their market is younger, more digitally-savvy customers, not accepting cash may have little effect on sales. This could help save the costs and security issues involved in handling cash.
For further information See: https://www.bbc.co.uk/news/articles/c20gevkx8gyo
The information provided in this blog is for general informational purposes only and should not be considered professional advice. As far as we are aware, the content is accurate at time of publication. Torgersens assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.
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