• Simon James, CEO at PayComplete


• 19.03.2025 12:00 pm
#Cash #DigitalPayments

If you’ve been following the rapid pace of advancements in payment technology, then you might think that cash has already been rendered obsolete - replaced by the swift beep of mobile phones as another item is paid for via digital wallets or contactless cards. After all, with digital payment solutions leading the charge, surely by 2025, cash is a thing of the past, right? 

Well, as it turns out nothing could be further from the truth. Looking back, 2024 was a pivotal year for cash, and 2025 is shaping up to have a similar path, as cash, surprisingly to some is very much here to stay. Last year, a major milestone for cash in the UK happened, as the Financial Conduct Authority (FCA) introduced Access to Cash regulations for banks and building societies. The FCA is not alone in taking these actions either. In the US, 26 states have proposed banning cashless retail establishments. States, including Connecticut, Massachusetts, Colorado, and Tennessee, already have bans in place. It’s a similar story in Europe with many countries looking to take similar actions.

Driving these changes is the second part of the story; consumers just love cash. Looking at data from the British Retail Consortium (BRC) reinforces this trend, showing that cash usage remains strong, further supporting this trend Nationwide released data in January which showed that ATM withdrawals are on the rise. 

The Love of Cash

PayComplete’s recent “Why Won’t Cash Just Die?!” report looks at consumers' relationship with cash in more detail and paints a clear picture. A staggering 89% of shoppers feel that having the option to pay in cash is crucial to their satisfaction. And when cash is removed from the payment options, the results are even more telling: 36% will walk away without making a purchase. In comparison, only 26% will begrudgingly switch to digital alternatives.

It gets worse too for businesses that still think cash is dead. Those switching to a cashless operation are putting their brand at risk, with nearly half (47%) of consumers believing that businesses that do not accept cash prioritise profits over customer satisfaction. 

The consumer love affair with cash is not limited to their customer experience. It’s more profound and connects with the view of their local communities. In fact, the role of cash in the community is an underappreciated part of its importance and enduring appeal. The research reveals that nearly three out of five (59%) consumers feel that paying with cash is a direct way to support local businesses. Interestingly, it was found that consumers are fully aware of the costs businesses face with card payments due to transaction and processing fees, with nearly two-thirds (65%) confirming they know there is a cost to card payments.  

Cash's role in society is just as significant, with many consumers believing it plays an integral part in education with 62% of consumers feeling that using cash helps teach children valuable financial skills. While digital payments have their advantages, they are inherently abstract. On the other hand, cash provides a tangible, hands-on way for people - especially younger generations - to learn about money management, budgeting, and spending limits.

Myth Busting

Over the years many opinions have also built up around cash and cash usage, which have distorted the picture around it, however on closer inspection, many of these have turned out to be nothing more than myths:

• Only for the Older Generation: The idea that cash is strictly for older generations can now be conclusively dismissed. A surprising 29% of Gen Z consumers use cash and prefer it as their primary payment method, pushing debit cards to second place. While among those aged 25-34, cash and debit cards are equally favoured, with 19% of respondents choosing each option.

• Forgotten: Contrary to the belief that cash gets forgotten, it plays a crucial role in many emergency plans. While the habit is most prominent among the 65+ age group (82%), even among the youngest group (18-24 years), 59% say they always carry cash as a backup.

• Happy Sharing Data: Half (50%) of consumers feel discomfort with how much data organisations can access through their shopping behaviours. At the same time, almost the same amount (46%) is either moderately or extremely concerned about businesses collecting data from their card payments.

It is clear now that despite all the noise of the past, cash is here for the long term and is set to play a significant role in the future of fintech, payments, and the economy. Consequently, the challenge for those who handle cash is not when to get rid of their systems and processes but how they can adapt and capitalise on the opportunity that cash represents to their business.

How CashTech is Changing the Way We Handle Cash

Cash handling is often a laborious task that is difficult to integrate and connect with other payment and accounting systems. However, if you’re a business looking to enhance its cash handling, there’s a solution: CashTech. This emerging technology bridges traditional cash management and the digital age, offering smart, efficient solutions that make managing cash easier, safer, and more streamlined.

The Bottom Line: Cash Still Matters

The bottom line is that cash is far from obsolete. It is indispensable to consumer experience, reputational management, and business operations. The ongoing preference for cash and supportive regulatory changes make it clear that businesses that neglect cash are likely to alienate a significant portion of their existing customer base and harm the acquisition of new consumers.

By embracing cash as a payment option alongside digital alternatives, businesses can offer more inclusive choices, strengthen customer loyalty, and maintain a competitive edge. Moreover, integrating CashTech into day-to-day operations allows businesses to reduce inefficiencies, enhance security, and streamline cash management, making cash viable and an asset in modern business operations.