Cash a crucial part of payments mix, say small firms

One in four small businesses in the UK still say cash is the most popular payment method among their customers, said Federation of Small Businesses and if the UK moved towards a cashless society, the small-business sector would suffer.

FSB national chair, Martin McTague said despite the pandemic accelerating the move to contactless payment, notes and coins are still important to millions of Britons.

Mr McTague was responding to the launch of the latest report from the Royal Society for Arts, Manufactures and Commerce and LINK, the UK’s largest cash machine network.

The report, The Cash Consensus, suggests cash usage will never return to pre-pandemic levels but access to cash is important for more than half of the UK’s population.

From its research RSA and LINK found that if the UK moved towards a cashless society without a managed transition, millions of the most vulnerable people would not be able to cope and many more would struggle.

Mr McTague said the new report suggests a combination of innovation in the free access to cash space and investment in digital capability is the only way forward.

“Through our Access to Cash Pilots, we’re increasingly identifying shared banking hubs alongside enhanced connectivity as integral to financial inclusion and increased productivity over the years ahead,” he said.

Source Financial Accountant click here to read more.