Another huge blow for UK high streets as 1 in 7 businesses ditch cash
The rapid shift toward a cashless society on the UK’s high streets accelerated dramatically in the past year, with 1 in 7 retailers ditching cash entirely in just 12 months. This is according to new research from LINK, the UK’s leading cash access and ATM network.
The research is based on a survey of 1,116 small and medium-sized enterprises (SMEs) across the country. It found that while 77% of these high street businesses still accept cash, 14%, equivalent to roughly 1 in 7, have gone fully cashless over the previous 12 months.
Despite the drop, the data shows that cash remains a significant part of everyday transactions. 46% of in-person purchases are still made with notes and coins. This figure rises even higher in sectors like independent retail, cafés and pubs, convenience stores, and launderettes, where cash usage consistently exceeds the average.
The move to cashless operations is driven by practical business concerns. The top reasons cited include:
- Fraud prevention (22%)
- Security concerns (21%)
- Lack of customer demand for cash (20%)
- Easier bookkeeping and accounting with digital payments (19%)
Other factors include the lack of local deposit facilities (13%) and the closure of nearby bank branches (11%). Handling cash also carries a financial burden, 46% of businesses pay more than £50 per month for cash deposits, with 15% paying over £200 monthly.
Some retailers were also upfront about why they continue to accept cash. This includes avoiding card processing fees (55%), improved cash flow and liquidity (50%), and faster transactions (49%). Nearly half (46%) of cash-accepting retailers actively encourage its use.
A decline in high streets
Over half of the surveyed businesses believe the decline in cash use is harmful to the high street, and 47% want to protect the option to accept cash in the future. Notably, 53% support government mandates requiring cash acceptance.
“It’s becoming more common to see a sign next to the till in a shop or café saying ‘card only’, twenty years ago it may have been cash only,” said Joanna Wallace, Chair of LINK’s independent Consumer Council.
“The ways we want to pay are changing, and so are the ways we are able to pay, this research shows the complex range of factors that affect any business owner’s choice of payment types. But the continued importance of cash on the high street rings true through it all.”
The report warns of the risk of a “two-tier” high street, where digitally excluded customers – often vulnerable groups such as the elderly, low-income households, or those preferring cash for privacy and control – could face exclusion.
It further calls for stabilising local cash deposit infrastructure (with 82% of SMEs valuing better access, such as through Post Offices and banking hubs), addressing retail crime and fraud, and monitoring cash acceptance trends to maintain a balanced payment ecosystem.
