Research carried out by consumer group Which? has found that thousands of people have been prevented from paying with cash in recent months due to the coronavirus pandemic.
Nearly 2,500 people responded to the consumer champion’s cash acceptance tool, launched in mid-September, which asked people to report their payment problems.
Which? said the results suggest a “concerning problem” with cash acceptance across the UK.
Now, the group is calling on the financial regulator to take “urgent steps to establish the full scale of the issue and ensure that cash remains a viable payment option for those who need it.”
Which? said its research found that four in 10 (38 per cent) related to a problem when paying for food or groceries, one in seven (14 per cent) were linked to leisure activities, such as going to a coffee shop or restaurant, and one in 10 (11 per cent) were for parking. And, two in five (43 per cent) who reported being unable to pay with cash said that they did not have another payment method at the point of purchase.
One in three (32 per cent) people said they were unable to buy the item at all as a result, Which? revealed.
And, the group said that “worryingly” four in 10 (38 per cent) left empty handed when trying to pay for groceries, while the figure stood at almost two in 10 (17 per cent) for those attempting to purchase medicine.
Which? said it also heard “concerning experiences” from people across a wide range of society about the impact of not being able to pay with cash. Some spoke of feeling “embarrassed or patronised” when shops refused to serve them, while others said they believed coronavirus was being used as an excuse to “get rid” of cash.
Which? said it believes these findings underline how a one-size-fits-all approach of denying cash payments “risks abandoning some of the most vulnerable in society”.
Richard Piggin, head of external affairs and campaigns at Which? said: “While many of us may have noticed shops displaying signs that they now only accept digital payments, our research shows that the rapid move towards a cashless society risks excluding the most vulnerable from being able to pay for vital products and services.
“We’re alarmed at the reports of people leaving food and medicine behind because they can’t pay with cash, and it underlines how important it is to have a coordinated approach to protecting the fragile cash system.”
Which? said it supports the government’s proposal for the Financial Conduct Authority to be given the responsibility to oversee the protection of cash access in the UK, and is calling on the regulator to also track levels of cash acceptance over time, so that it can work with the government to establish what measures may be needed to address the issue.
Share