News

Cash makes a comeback in the UK

June 11, 2013

Even as U.K. banks push electronic payments in order to reduce their cash-handling costs, the public is pushing back with a renewed demand for cash in hand.

Budget-minded Brits are behind a resurgence of cash in the U.K., according to a report by the Payments Council and national ATM operator Link. 

The Daily Mail quoted the report's assertion that "[m]ore people are turning to cash exclusively, possibly to help them monitor the amount they are spending on a day-to-day basis. In 2012, 7.2 million adults made all of their day-to-day purchases by cash, an increase of around 700,000 compared with 2011."

Judging by comments following the Daily Mail article, distrust of banks also could be providing impetus in the trend toward cash use.

Said one commenter from Exeter, "Keeping cash maintains your control ... give in to the bankers with plastic and you will lose — they of course will win."

Another from London said, "They want us to use plastic because its more profitable. How much do banks make from every turn of cash that isn't banked through their systems? How much do banks make on every transaction across their systems?"

Read more about trends and statistics.