News

In the UK, cash still dominates

June 6, 2014

A new industry report, “U.K. Cash & Cash Machines 2014,” has confirmed the strong role that both of the subjects in its title play for Britons. The study found that in 2013, ATMs in the United Kingdom dispensed cash at an average rate of £6,083 ($10,218) per second, much of it from fee-free ATMs, whose numbers are at an all-time high.

The report, published jointly by the Payments Council, Cash Services, and LINK ATM Scheme, includes statistics on how, where and how frequently Brits get cash, and also forecasts cash use over the next 10 years.

Cash remains the most commonly used payment method in the U.K., which registered 20 billion cash payments in 2013, representing 52 percent of all payments. Although cash use decreased slightly last year, the trend over the past five years has been steady.

This stands in marked contrast to a report from the British Retail Consortium, which said in a June 2 press release that cash use was down 14 percent. A news release from the Payments Council noted that the consortium considers only retail spending data reported by its members, while figures from the Payments Council are collected industrywide through annual market research with a nationally-representative group of consumers.

The ATM is still the most popular means of obtaining cash, the report said. At the end of 2013 cardholders across the U.K. had access not only to more ATMs than ever (67,963 total), but also to more fee-free machines (48,012 in all, an increase of 4.2 percent year over year.)“Despite speculation on declining cash use, the reality is that the majority of our everyday purchases are still made in cash, particularly for low-value items,” Cash Services head David Hensley said in a news release. “Clearly customers need and want cash as much as ever.”

“Access to cash is vital for the majority of U.K. consumers, and LINK is committed to providing a convenient and safe national network of cash machines to support this need,” LINK CEO John Howells said. “Continued investment and innovation in the ATM network is a priority for LINK to develop this important national service.”

Almost all withdrawals (98 percent) were made from free-to-use ATMs, an increase of 1 percent over 2012. The average withdrawal per visit came to £66 ($111) per visit.

The increase reflects industry efforts to install ATMs in underserved areas and increase the number of free-to-use-ATMs, the report said.