Most people aren’t yet ready to go cash-free

THE choice of ways to pay may be increasing, but less than one in 10 people would be ready to go without cash altogether, a survey by Post Office has found. Some 91% say they want to retain the choice offered by different payments, rather than moving to a cashless society. ■

For 25% of people, it’s important to have a choice of payment methods. Many say paying by cash helps them manage their money, with 23% saying they feel more in control of their outgoings by making physical payments.

Nearly a quarter (23%) say they simply feel more comfortable using cash, and this applies to younger (22% of 16 to 24-year-olds) and older age-groups (30% of over-55s). And 14% say they feel more protected from fraud.

However, it’s worth bearing mind that some non-cash payment methods do offer people certain extra protections against losing money. For example, credit card payments can be protected under Section 75 of the Consumer Credit Act. Paying by methods such as PayPal can also give you added protections if something later goes wrong.

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On average, we carry £26 in cash in our wallets, the research found. Paying to park the car, popping out to buy food, nights out, pocket money, going to local events and paying for services such as window cleaners are all common situations where we’re still likely to reach for notes and coins.

Martin Kearsley, director of banking services at Post Office, says: “Despite the increased use and popularity of digital payments, our research highlights that the debate on the future of cash should not be about one form of payment replacing the other, but instead looking at how consumers balance their use of different methods alongside one another.”