New research from NatWest reveals that despite a decline in cash usage, it remains quite versatile, with three-quarters of UK consumers still keeping paper money and coins for emergencies.
The survey, which included over 2,000 adults across the UK, highlighted the influence of digital payment alternatives. A significant number of cash users are open to using card or contactless payments in certain situations. While only 8% of adults claim to use cash and coins “all of the time,” reliance on cash is growing in specific contexts, proving essential for many in terms of spending and budgeting.
The study found that 54% of vulnerable individuals now regard cash as “essential,” an increase from 47% over the past two years. Furthermore, 76% of Brits who prefer digital payments still carry cash for emergencies, with 48% doing so frequently.
As payment methods evolve, users are exploring new ways to access cash, such as utilizing banking hubs and Post Offices, though ATMs remain the most popular option. Despite cash’s ongoing usage, contactless methods and digital alternatives are also gaining traction, even among regular cash users. For instance, 36% of low-income cash users indicated that enhanced fraud protection would encourage them to transition away from cash, while 38% expressed interest in products that provide change via mobile apps or cards instead of coins for easier transactions.
This research aligns with NatWest’s announcement of a partnership with NCR Atleos to upgrade its network of 5,500 ATMs and multi-function devices. This initiative will modernize all NatWest-owned ATMs and devices with NCR Atleos technology featuring 19-inch touchscreen displays.
Mark Brant, chief payments officer at NatWest, emphasized the importance of cash for many customers and the bank’s commitment to supporting them through these changes. He noted, “As payments and services become increasingly digital, it’s crucial for us to innovate for cash users – deploying new technology and testing new solutions to meet these customers’ needs now and in the future.”