An increasing number of UK High Street shops are abandoning cash payments and opting for card or mobile transactions, according to new research highlighting changing payment habits and growing concerns among retailers.
A survey conducted by the UK’s main ATM network, Link, found that about 14% of small shops have gone completely cashless over the past year. The shift reflects a wider trend as businesses weigh security risks, operational costs and evolving customer preferences.
Despite the move toward digital payments, cash still plays a significant role in the retail economy. Around half of in-store purchases across the UK continue to be made using physical money, indicating that cash remains an important payment method for many consumers.
The research also highlighted the challenges retailers face when handling cash. Businesses reported expenses related to deposits, security and staff time spent managing physical money, which are often higher than digital transaction fees.
Members of the influential Treasury Committee have previously warned that the decline of cash acceptance could create serious problems for vulnerable groups. In a report last year, MPs said the government should be ready to introduce rules requiring some businesses and services to accept cash.
Lawmakers argued that the disappearance of cash payments could lead to a “two-tier” retail system. In such a scenario, stores that still accept cash might charge higher prices due to additional handling costs, creating what campaigners describe as a poverty premium.
Currently, businesses in the UK are free to choose which forms of payment they accept. However, some countries have already introduced limited laws requiring essential services to accept cash, aiming to ensure that people without access to digital banking are not excluded.
The coastal town of Hastings in East Sussex illustrates the mixed approach seen across many British High Streets. Independent shops and chain retailers there reflect a diverse payment landscape, with some operating cash-only, others card-only and many accepting both.
Alex White, owner of Arkwhites in Hastings Old Town, said his store initially accepted only cash when it opened. The shop sells items close to their best-before date at discounted prices, attracting bargain-hunters from across the community.
White explained that his original decision to avoid card payments was rooted in personal preference and cost concerns.
“When I started I wanted it just to be a cash store because that’s the way I’ve been brought up,” he said. “I didn’t really want to go into using a credit card machine which is an extra cost.”
However, over time he noticed a clear shift in customer behaviour. “A lot of people just use their cards and don’t carry cash anymore,” he added, explaining why he eventually introduced card payment options in the shop.
Across Hastings, payment rules vary widely from business to business. Some fish-and-chip shops and bookstores continue to operate on a cash-only basis, while several dessert shops and ice-cream vendors accept card payments exclusively.
According to Link’s report, titled Keeping Choice Alive, about 77% of High Street businesses still accept cash. However, more than half of the retailers that stopped accepting cash made that decision within the last year.
Retailers cited several reasons for going cashless. Around one-fifth of shop owners pointed to concerns about counterfeit banknotes and fraud. Another similar proportion said safety concerns were a major factor, including risks of theft, shoplifting and violence against staff handling cash.
Customer behaviour also played a role. Nearly as many businesses said there was simply less demand from shoppers to pay using cash, especially among younger consumers.
The cost of handling money is another major issue. With many bank branches closing or operating reduced hours, depositing cash has become increasingly inconvenient and expensive for small businesses.
About half of the retailers surveyed said they spend more than £50 per month on handling cash deposits. Meanwhile, around 15% reported monthly costs exceeding £200.
Among shoppers themselves, opinions remain divided. Younger consumers in their twenties and thirties often rely on smartphones or contactless cards, rarely carrying cash.
Older residents, however, tend to favour physical money and value the option of choosing how they pay. Sharona Wrighton, a 63-year-old resident in Hastings, said cash helps her manage her finances more effectively.
“When you are on benefits you have to budget, so you need cash,” she explained. “Do not get rid of cash.” Link has called for measures to maintain access to cash services, including deposit facilities for businesses and stronger action to address crime affecting retailers.
The organisation also stressed the need to monitor how many shops still accept cash and to promote digital inclusion so people can safely use modern payment methods if they choose.
Nick Quin, chief corporate affairs manager at Link, said the lack of reliable data on cash acceptance makes it difficult to understand how quickly the transition is happening.
“There’s a lack of evidence on what is actually going on with cash acceptance,” Quin said. “If we don’t get this right, there’s a big risk that we exclude cash users as the way people pay for things continues to change.”
