Events such as the Iberian power blackout have led some UK consumers to return to physical money, while others remain unconvinced. Ty, a 27-year-old student in Brighton, recently switched to using cash almost exclusively after witnessing payment system failures. He says cash is private, doesn't incur merchant fees, and won't fail during outages.
David, a 64-year-old retired man from Bury, was in Granada during Spain's energy blackout. He had a little cash on him and was able to buy a warm beer, prompting him to keep cash at home. Annie, in her early 40s from East Sussex, walks out of card-only businesses, viewing the trend toward a cashless society as eroding freedom of choice.
Despite cash accounting for only 12% of UK payments in 2023, down from 51% in 2013, the value of banknotes in circulation has risen 23% since before the pandemic, according to the Bank of England. The Bank's chief cashier, Victoria Cleland, attributes this to households building contingency pots in response to high-profile incidents like the Iberian blackout and cyber-attacks on retailers.
Not everyone is convinced. Dave, a 61-year-old from Preston, dislikes carrying cash, finding it cumbersome and unnecessary. He keeps about £100 at home but does not hoard. Ruth in Essex prefers Apple Pay, expressing distaste for physical money.
Nearly 33 million withdrawals were made from Nationwide's ATMs last year, up 4.6% on 2023, reflecting a trend toward 'cash stuffing' seen during the cost of living crisis.
