Londoners are embracing cashless transactions at a faster rate than the rest of the UK, according to recent data.
Figures from Link, the firm that manages the majority of the UK’s cash machine network, reveal that residents and workers in the capital are withdrawing £500 million less each month from ATMs compared to pre-pandemic levels.
Furthermore, there are now 2,069 fewer cash machines in London than there were in 2019.
London Turning Cashless Faster than Rest of UK, Figures Show
London Turning Cashless Faster than Rest of UK, Figures Show
This trend coincides with some businesses increasingly refusing to accept cash.
Pizza Hut is one prominent chain that has transitioned to cashless payments. Additionally, several independent businesses, such as the restaurant “The Indians Next Door” in Spitalfields, East London, exclusively accept card and digital payments.
Tomasz Jakobowski, the restaurant’s manager, noted that most people in the area prefer paying by card, stating, “It’s easier, easy just to tap by card or by phone, easy, you pay and you go.”
While some stalls at Spitalfields Market nearby have also adopted cashless policies, less than two miles away in Watney Market, Shadwell, cash remains the preferred method of payment. Traders there stated that cash still reigns supreme.
Makshudur Rahman, who runs the Mahfuj Jewellery shop, explained, “In this area, some people [are] on very low incomes so they prefer cash because when you pay by card, you don’t know how much you’re spending.”
Link’s data suggests that many individuals still rely on cash to manage their finances, particularly those in lower-income brackets. These individuals could be among the most economically disadvantaged in London.
Nick Quin, the head of financial inclusion at Link, emphasized, “Cash remains vital to 700,000 Londoners. London is using less cash, but it’s not going cashless yet.”
London Turning Cashless Faster than Rest of UK, Figures Show
London Turning Cashless Faster than Rest of UK, Figures Show
Age UK London’s Abi Wood expressed concerns about cashless transactions excluding older people who may not be comfortable with digital payment methods. She noted that while some are comfortable using apps and cards for payments, a “sizeable minority” still rely on cash, and the shift towards a society where cash is less accepted could lead to isolation for these individuals.
The UK government has stated that it has no plans to implement a rule similar to Slovakia, where a constitutional amendment guarantees citizens the right to pay in cash. A Treasury spokesperson mentioned that businesses have the autonomy to decide which payment methods they accept and added, “We have taken action to encourage businesses to continue accepting cash by ensuring that the vast majority will be within three miles of cash withdrawal and deposit facilities.”