Cash usage on the rise
Cash usage in the UK has increased for the third year in a row. According to Nationwide Building Society, withdrawals from ATMs have risen by 4.6% over the past year, signalling a growing preference for physical currency despite the dominance of digital payment methods.
Data from Nationwide* revealed that more than 30.2 million cash withdrawals were made in 2023, totalling a staggering £4.34 billion. On average, individuals withdrew £105 per transaction, a noticeable increase from £100 in 2022. This trend highlights a significant shift as people return to using cash for budgeting and day-to-day expenses amid the rising cost of living.
The return to cash is attributed to several factors, including economic uncertainty and the increasing cost of living. Many individuals are turning to cash as a way to better control their spending. When using physical money, people can physically see how much they’re spending and how much remains, providing a more tangible sense of financial discipline.
Nationwide’s research is consistent with broader trends across the UK. While digital payments such as contactless and mobile wallets remain the norm for many, cash usage is proving to be resilient. For some individuals, particularly those in rural areas or older generations, cash is still a preferred and trusted method of transaction.
At Pivotal, we are behind the initiative of keeping cash in circulation. We recently launched our #CashIsPivotal campaign to highlight the crucial role cash plays in society. The initiative aims to raise awareness about the importance of preserving access to cash while encouraging individuals to choose cash as a preferred payment method, especially for those who depend on it the most.
For more information, please contact Ashleigh McClean at ashleigh.mcclean@wearepivotal.io.
