Volumatic seeks to make cash handling simpler for businesses as cash payments rise across the UK
02 October 2023
New data released mid-September of 2023 proves once and for all that cash is most definitely making a comeback! Cash usage in the UK has already been steadily rising since it was first widely (and prematurely) abandoned by certain people in the wake of the Covid pandemic 3 years ago. This was largely due to misinformation that cash actually spread the virus - since disproved by the World Health Organisation.
But now the latest data from financial industry champions UK Finance has revealed that cash payments across the UK rose for the first time in a decade during 2022, with approximately one million people using it for the majority of their transactions.
Financial experts believe the reason behind this resurgence is the cost-of-living crisis, with cash becoming the clear winner when it comes to helping Brits navigate the many challenges this time of austerity has brought about. Consumers say they find it easier to manage their money using cash, and many businesses too are once again returning to accepting cash. Not only will this move help remove the risk of losing customers, but more cash transactions will also help them reduce the ever-growing fees charged by credit card companies to process card transactions.
The number of cash transactions increased by 7% from 2021 to 2022, meaning 6.4 billion payments were made in physical cash. This equals 14% of total payments, making cash the second most popular payment option behind debit cards.
And while we’re not quite back at the cash usage levels seen pre-pandemic in some places, this rise in the demand for cash has recently been echoed by The Post Office network, which has stepped in over the last couple of years to provide banking services in the light of the growing number of bank closures. They also saw a huge increase in cash transactions in 2022, which has continued into this summer, peaking in July and August 2023. With so many Post Office counters being used by those who prefer cash, this reinforces both the continued popularity of cash across all age groups and demographics and the need to provide everyone with access to cash.
Fighting against a cashless society
Cash usage across the UK has been a subject of debate for many years now, and in 2023 in particular, it’s a subject that has evoked passionate debate from businesses and consumers alike, with many keen for it to remain the vital cog it always has been in our economy.
The fight-back against a cashless society in the UK is already in full swing, with the announcement earlier this year of forthcoming legislation that will require bank and building societies to provide free cash withdrawal facilities within three miles of both consumers and businesses. While further details are still to be outlined in this legislation, reports suggest that the Financial Conduct Authority will be given the power to fine companies who fail to meet the criteria of offering satisfactory access to cash.
How Volumatic can help
As both access to cash and the rise in cash usage continue to improve, businesses need to be prepared to be able to process their cash takings in the most efficient way possible – and this is where intelligent cash handling experts Volumatic can help!
Volumatic offers a wide range of cash handling solutions that will enable you to process your cash more efficiently and more accurately, saving you time and money.
If you’re looking for a quick and simple way to count your cash, our range of CountEasy money counting scales can help and can count the contents of a till drawer in less than a minute.
Or if you’re looking for something a little more sophisticated, take a look at the CounterCache intelligent (CCi). This discrete and innovative solution validates, counts and securely stores your notes at POS. The CCi ensures your staff only touch notes once, and not only improves security but makes your banking process smoother and smarter, when paired with our intelligent and newly upgraded software, CashView Enterprise.
While it seems certain that the use of card and mobile payments won’t be slowing down, it’s evident now that there is most certainly a place for cash in the UK’s payment landscape too, so rather than fight against this, or make it difficult for your customers to use the payment method they prefer, now is the time to be embracing cash and giving your customers choice once again.
Mike Severs, Head of Sales & Marketing at Volumatic said: “All of our own research from recent years has been pointing towards cash making a welcome return and the UK Finance data, backed up by the stats from The Post Office proves that cash is very much still alive and well and continuing to rise. While it’s true that other forms of payment are also rising, the key finding here is that consumers still want the choice of how to pay for things, and that very much includes cash.”
“We’ve seen an increased demand in customers looking for cash handling solutions this year, including some who went cashless and then reversed that decision in the wake of public demand and loss of profits. As cash handling experts, Volumatic can help your business find a cash handling solution that suits your specific needs – and in doing so we’ll help you make savings to help combat the continually rising credit card fees. It’s so important to give your customers choice and find the most efficient way to process your takings each day.”