Research from NatWest reveals the fast pace of change in the payments behaviors of consumers across the United Kingdom.
As digital payments become more available, in 2024, merely 8% of adults report that they still use cash and coins “all of the time,” according to NatWest data.
The research, surveying over 2,000 adults across the UK, highlighted the impact of digital alternatives, indicating that the “majority of cash users are able and willing to use card or contactless payment methods in certain situations.”
Despite the decline in cash usage, however, reliance on cash is increasing in certain contexts, and it remains “important for many in specific types of spending and budgeting scenarios.”
54% of “vulnerable” individuals now consider cash to be “essential,” up from 47% two years ago. Indeed, 76% of Brits who favor digital payments still “carry cash for emergencies, with 48% doing so often or always.”
As payment methods evolve, many are turning to new ways to access cash, with growth in the use of “non-branch channels like banking hubs and Post Offices – though ATMs remain the most popular cash access service.”
Despite the ongoing use of cash in various circumstances, contactless methods and digital alternatives have continued to “grow in popularity, even amongst frequent cash users.”
36% of low-income cash users said that “better protection against fraud would make them more likely to switch from cash to other payment methods, while 38% of respondents said they would be likely to use a product that gave them change from cash transactions on a mobile app or card, rather than in coins, for easier spending and saving.”
As part of its support for face-to-face banking, NatWest has invested significantly in its ATM network, which was the “largest of any UK bank, which will equip its ATMs with enhanced security features and deposit-taking facilities.”
It has helped customers who frequently withdraw from pay-to-use ATMs by guiding them to nearby “free-to-use alternatives, helping customers to save approximately £2.7m in fees in the last twelve months alone (compared to before launch).”
Aware of these evolving payment methods, NatWest will host an event later this week, focused on “reimagining the future of cash.”
It will bring together representatives from organizations, including retailers like Tesco and Lidl, and brands like IBM and the Royal Mint, to “innovate on future payment methods, with specific reference to cash usage.”
Retailers, charities, and experts will collaborate in workshops, panel discussions, and activities all aimed at “developing solutions that support both cash and digital payments for customers.”
Mark Brant, Chief Payments Officer at NatWest said that cash remains important for many of customers, and there’s an “important job for them to support those who continue to use cash, as payments and services become increasingly digital.”
Brand explained that this is why NatWest is continuing to “innovate for cash users – deploying new hardware and software, testing new propositions, and pushing the industry to harness our collective creativity, all to ensure these customers’ needs are met now and in the future.”
Research conducted in conjunction with Savanta, a data, market research and advisory company.
Savanta has reportedly interviewed “2,070 UK adults aged 18+ online from August to September 2024. Data were weighted to be representative of all UK adults by age, sex, region and SEG.”
Savanta is a member of the British Polling Council and abides by its rules.
