GB News launched its Don’t Kill Cash campaign earlier this year, urging the Government to introduce legislation to protect the status of cash as legal tender, amid more and more shops and eateries going “card only”
It’s the first time since the BRC began its reports in 2013 that there has been a year-on-year increase in cash usage, the BRC said.
However, the recovery in cash use in retail is “fairly minimal”, the report noted, with “only a relatively small increase as a share of total sales by value, up from 8.2 per cent in 2021 to 11 per cent in 2022".
The report added: “It appears that whilst a small percentage of people have returned to pre-pandemic habits, for a large portion of the population, the pandemic has had a lasting impact on how much we transact in cash.”
Card payments were used for 76 per cent of transactions in 2022, with debit cards accounting for around four in five of these transactions.
Retailers spent £1.26billion on card processing fees in 2022, the BRC said.
The research also found alternative payment methods – including options such as buy now, pay later – increased in popularity last year, from two per cent of transactions in 2021 to five per cent in 2022.
Consumers made smaller but more frequent payments, the survey found.
The number of transactions increased from 17.2 billion in 2021 (47.2 million per day) to 19.6 billion in 2022 (53.7 million per day), while the average transaction value fell from £24.49 to £22.43.
Hannah Regan, payments policy adviser at the BRC said: “We are now seeing a return to many of the pre-pandemic trends in payments, including smaller but more frequent purchases, and a slight return of cash payments.”
Ron Delnevo, Payment Choice Alliance Chair, told GB News he was confident cash usage would continue to rise. He said: "Cash use will continue to increase, as more and more people realise how brilliant cash is for managing their spending - and, of course, it always works. Cash nevercrashes.”
“It's good to see BRC producing such research; the High Street banks tend to underestimate cash use, probably because they want to give the impression GB is rushing towards 'cashless', which it is not.”