One in Seven High Street Businesses Have Gone Cashless in Past Year, Report Reveals
New research has uncovered a significant shift in payment methods across British high streets, with one in seven businesses abandoning cash transactions entirely over the past twelve months. The comprehensive study, conducted in September 2025, surveyed more than 1,100 small and medium-sized enterprises (SMEs) throughout the United Kingdom.
Survey Details and Key Findings
The research, commissioned for Link's "keeping choice alive" report, reveals that while 77% of small and medium-sized retailers continue to accept cash, a notable 14% have transitioned to cashless operations. Link, the prominent ATM and cash access network, published these findings, highlighting the evolving landscape of consumer payments.
Despite this trend toward digital transactions, cash remains a substantial component of the UK economy. The survey indicates that 46% of in-person transactions are still conducted using physical currency. Certain sectors demonstrate even higher reliance on cash, with independent retailers, cafes, pubs, convenience stores, and launderettes all reporting cash usage consistently above the national average.
Primary Drivers Behind the Cashless Movement
Businesses cited multiple factors influencing their decision to eliminate cash payments. The most significant driver identified was fraud prevention, followed closely by security concerns and a noticeable lack of customer demand for cash transactions. Approximately one-fifth of businesses (19%) reported that digital payments simplified their bookkeeping and accounting processes, making financial management more straightforward.
Additional considerations included the diminishing availability of deposit facilities and the widespread closure of local bank branches. These infrastructure challenges have created practical difficulties for businesses that continue to handle cash. Notably, 82% of surveyed businesses expressed a desire for improved access to deposit options, such as post offices and shared banking hubs where multiple financial institutions operate from a single location.
Contrasting Perspectives on Cash Usage
The research presents a complex picture of cash's role in contemporary commerce. Among businesses that still accept physical currency, nearly half (46%) actively encourage its use. These enterprises recognize several advantages to cash transactions, including avoiding card processing fees, maintaining liquidity, and facilitating faster transaction speeds.
However, some businesses highlighted the cost of handling cash as a significant concern, suggesting that the expenses associated with secure storage, transportation, and banking of physical money contribute to the shift toward digital alternatives.
Industry Support for Cash Acceptance Mandates
A majority of surveyed businesses (53%) indicated they would support regulatory measures mandating cash acceptance. The report advocates for a coordinated approach to addressing high street crime, emphasizing the need to help businesses prevent theft and fraud while ensuring staff feel safer in their working environments.
The document further recommends regular monitoring of cash acceptance rates to accurately track "where cash is truly usable, not just available," ensuring that payment options remain accessible to all consumers.
Industry Reactions and Commentary
Joanna Wallace, chairwoman of Link's Consumer Council, observed: "It's becoming more common to see a sign next to the till in a shop or cafe saying 'card only' – 20 years ago it may have been 'cash only.' The ways we want to pay are changing and so are the ways we are able to pay – this research shows the complex range of factors that affect any business owner's choice of payment types. But the continued importance of cash on the high street rings true through it all."
Nick Quin, chief corporate affairs officer at Link, emphasized: "We are making sure that people can access their cash, and businesses can deposit their cash, in every corner of the UK. That is critical as more and more people choose to pay with their contactless card. This research shows that we must continue to give businesses the option to bank their cash locally, and keep a close eye on acceptance. But it also shows that businesses are committed to allowing people the choice of how to pay."
Jenny Ross, editor of Which? Money, added: "While some businesses are choosing to go cashless, cash remains hugely important for many consumers, particularly those on lower incomes who rely on it to budget and manage their spending. Businesses should not feel forced to drop cash because of shrinking banking infrastructure or difficulties depositing earnings locally."
The report received support from several prominent organizations, including the Federation of Small Businesses (FSB), the Post Office, and PayPoint, underscoring the broad industry concern about maintaining payment choice while adapting to technological changes.
