THE UK is set to be virtually cashless by 2028, as Brits are ditching notes and coins for mobile, card and online payments.
Already, one in ten people say they hardly ever make cash purchases but UKFinance is predicting that more than 90 per cent of transactions will be digital in less than a decade.
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Initially, the association had predicted we’d be going cashless by 2035, but the rise of mobile and contactless means that cash use is declining faster than expected.
Access to Cash Review, an independent body set up to consider consumer payment needs, is concerned about how the shift towards a cashless system will affect the most vulnerable in society.
It argued that banks should be obliged to provide cash access to their customers and that the government must introduced new laws to protect physical currency.
It says that while some progress has been made, there are still significant problems in the UK’s cash infrastructure.
Barclays recently reversed plans to stop customers accessing cash withdrawals from post offices after a backlash.
And various initiatives have been set up including cashback at local shops and a “request an ATM” service.
Despite this, over the past year, 13 per cent of free-to-use UK ATMs have closed.
A quarter of ATMs now charge people to withdraw their money and the Post Office’s cash access service has come under serious threat.
Natalie Ceeney, independent chairwoman of the Access to Cash Review said: “We need to make sure that this shift doesn’t leave millions behind or put our economy at risk.
“Now is the time for Government to protect cash.”
A UK Finance spokesman said: “The banking and finance industry recognises the importance of ensuring cash remains free and widely available for those that continue to need it and… has introduced a number of measures to achieve this.
“There is no ‘one size fits all’ approach however and understanding the needs of local communities is critical.”
Which? money editor Jenny Ross said: “The cash network has already been dramatically eroded, and, unless urgent action is taken in the Budget, it’s clear that it will crumble completely.
“Some industry-led initiatives are encouraging, but they cannot stem the tide of bank branch and cash machine closures alone, and without legislation many more communities will be cut off from cash or forced to pay hefty fees to access their own money.”
One in ten UK adults rarely use cash due to rise of contactless and mobile banking.
New rules mean that your bank card might be declined more often, even if you have plenty of cash.
The banks that let you temporarily freeze your card if you misplace it.
