March 2026
Featured in this insight: Business & enterprise, Consumer goods & FMCG , Financial services, IT & telecommunications, Retail
Recent research shows that one in seven shops in the UK have ceased accepting cash within the last year. Additionally, over half (56%) of high street businesses have reported a decline in cash usage over the last two years, indicating a growing consumer preference for digital payment methods.
The study by LINK’s Consumer Council surveyed 1,116 high street SMEs (with between 2 and 249 employees) in September 2025. The main objective was to examine the continued feasibility of cash acceptance in light of evolving methods in payment habits.
The survey revealed that while more than three-quarters (77%) of small and medium-sized retailers still accept cash, and nearly half (46%) of in-person transactions are conducted with cash, an increasing number of retailers (14%) stopped accepting cash altogether in the past year. When asked about their reasons for going cashless, just over one-fifth (22%) of respondents cited fraud prevention, including concerns about counterfeit currency. A similar percentage (21%) mentioned security issues. Additionally, 20% said that low customer demand for cash transactions had influenced their decision.
The research also shows that people's payment preferences are changing rapidly, with more customers opting for digital payment methods such as cards, smartphones, and smartwatches for their daily purchases. According to UK Finance, cash now represents less than 10% of all transactions. Additionally, the report highlights that cash withdrawals have decreased by 50% since 2018, including a further 8% decline in 2025; further evidence of how quickly digital payments are becoming the norm for most consumers.
The report warns that, while the rejection of cash is still relatively low, a decline in cash acceptance could lead to a two-tier high street. This situation may disadvantage individuals who rely on cash, including those who are digitally excluded, older shoppers, and people who manage their budgets using cash.
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