2023 saw a significant jump in the small percentage of people who mainly use cash for their day-to-day transactions as consumers struggled to manage tight budgets.
Fresh data released this morning by banking trade body UK Finance shows that cash usage hit a record low of just 12% of all transactions last year, with an estimated 39% of adults making cash payments no more than once a month. Approximately 60% of all payments were contactless, with 42% of adults registered for mobile phone contactless payments such as Apple Pay.
However, some 1.5 million adults still mainly used cash for day-to-day spending, though most used electronic payments for monthly bills. That was up from 900,000 in 2022 and was the highest total since 2019.
UK Finance said cash users tended to be poorer and preferred using physical currency as a way to budget, but also cautioned that the sample size was small and it was thus hard to make reliable generalisations or be certain that the increase was not a blip.
Sarah Austin, director of the British Business Excellence Awards, said the resurgence of cash was a "blunt indicator of the times" and a "clear response to economic pressures".
“For businesses, this trend carries significant implications," she said. "Retailers in particular must not overlook the necessity of supporting cash transactions. While the digital payment revolution has been swift and widespread, abandoning cash can alienate a substantial customer segment.
"British businesses also benefit financially from the increase in cash payments. As card payments decrease, the associated transaction fees charged by card machine companies are reduced, allowing businesses to retain a greater share of their sales profits."
Ms Austin added that the figures also shine a light on issues of financial inclusion.
"Many people revert to cash due to lack of access to digital banking or a fundamental distrust in digital systems," she said. "Businesses and financial institutions need to craft strategies that not only promote digital adoption but also respect and accommodate those who rely on cash as inclusivity should be at the forefront of any financial strategy.”
Jana Mackintosh, managing director for payments at UK Finance, said Britain is not on its way to becoming a cashless society and forecast that cash would continue to account for 6% of transactions in 2033.
"Cash is still the second most frequently used method of payment in the UK, although we are using it less and more people are leading largely cashless lives," she said.
ScottishPower owner projects £3.5bn profit for the year
The owner of ScottishPower has raised its outlook for the year, saying it expects double digit growth in net profit and earnings of over £8bn.
Spanish-based Iberdrola took over ScottishPower in a £11.6bn deal in 2007, and also operates in Brazil, Mexico and the United States and is the world's largest producer of wind power.
On Wednesday it announced revised forecasts for the year, including a jump in net profit.
Net profit rose to €4.13billion (£3.47bn) in the first six months of the year, up from €2.52bn a year earlier.
Read the full story here.
Scottish law firm doubles headcount after takeover
A long-established Scottish law firm has more than doubled its headcount and trebled its tally of fee earners within two years of changing ownership.
Garden Stirling Burnet, one of East Lothian’s oldest and largest legal firms, has grown its team from 17 in 2022 to more than 40 this year, with its ranks of fee earners climbing to 18 from five.
The firm noted that its turnover has increased by one-third in the last 12 months, without providing a specific figure.
Read the full story here.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here