Cash payments are still common across the UK high street, yet many businesses are steadily shifting toward digital-only transactions.
A recent industry survey highlights how payment habits are changing for both retailers and customers. While most small businesses still accept cash, a noticeable portion has already moved away from it.
The findings show a mix of financial, operational, and security factors influencing how businesses choose to accept payments.
Cash Still Plays a Major Role
Research conducted in September 2025 surveyed more than 1,100 small and medium-sized enterprises (SMEs) across the UK. The study was prepared for the “Keeping Choice Alive” report published by Link, the UK’s ATM and cash access network.
Results indicate that 77% of small and medium-sized retailers still accept cash. Yet a growing minority has shifted away from it. About 14% of businesses reported going cashless during the previous 12 months, showing a gradual move toward card and digital payments.
Despite the rise of digital options, cash continues to account for 46% of in-person transactions. In several sectors, cash usage remains even higher than this average. These include independent retail shops, cafes and pubs, convenience stores and launderettes.
In these settings, physical money still moves quickly and remains a familiar method for many customers.
Why Some Businesses Are Choosing to Go Cashless
The survey revealed several reasons behind the decision to stop accepting cash. Fraud prevention ranked as the leading factor. Business owners also pointed to security issues and limited demand from customers who increasingly prefer contactless cards or mobile payments.
Operational convenience also played a role. Around 19% of surveyed businesses said digital payments make bookkeeping and accounting easier to manage. Electronic records reduce manual tracking and simplify financial reporting.
Another factor involves infrastructure changes. Many business owners noted the closure of local bank branches and a lack of nearby deposit facilities. Without convenient locations to deposit cash earnings, handling physical money becomes more complicated.
Businesses Still Value Access to Cash Services
Even as some shops adopt card-only systems, many business owners continue to rely on cash services. According to the survey, 82% of businesses said better access to deposit facilities would be valuable.
Examples of facilities businesses want include:
1. Post offices that accept cash deposits
2. Shared banking hubs used by multiple banks
These services make it easier for retailers to manage daily takings without having to travel long distances.
Cash-handling costs were also cited as a concern. Counting, storing, and transporting money can require extra resources, particularly for small businesses with limited staff.
Why Many Retailers Still Encourage Cash
Among businesses that continue to accept cash, 46% actively encourage customers to use it. Owners cited several advantages tied to physical payments.
Avoiding card processing fees ranked high among the benefits. Cash also provides immediate liquidity, allowing businesses to access funds without waiting for digital payment processing.
Transaction speed is another factor. For quick purchases, many retailers find cash payments simple and efficient.
Support for maintaining cash acceptance is also strong. More than half of businesses surveyed (53%) said they would support rules requiring retailers to continue accepting cash.
Industry Leaders Stress Payment Choice
The report was led by Link’s Consumer Council and supported by organizations including the Federation of Small Businesses (FSB), the Post Office, and PayPoint.
Joanna Wallace, chairwoman of Link’s Consumer Council, explained that payment habits have shifted significantly. According to Wallace, it is now common to see a “card only” sign next to the register, while two decades ago many shops displayed “cash only.”
Wallace noted that payment preferences are changing quickly, yet cash still holds an important place on the high street.
Nick Quin, chief corporate affairs officer at Link, emphasized the need to maintain access to cash across the UK. Efforts are ongoing to ensure people can withdraw money and businesses can deposit it locally, even as contactless payments grow more common.
Jenny Ross, editor of “Which? Money,” highlighted another concern. Cash remains important for many households, particularly those with lower incomes who rely on it to manage budgets and control spending.
Payment methods on the UK high street are gradually shifting toward digital options. Yet cash still holds an important place for many businesses and consumers. As payment habits continue to change, reliable access to banking services, deposit facilities, and cash infrastructure remains essential to keep payment choices available.