Do you still use cash? Do you want to keep it as a payment choice? As the UK seems to be moving in the direction of becoming a “cashless” society, the Payment Choice Alliance (PCA) has launched a new campaign to halt and reverse this trend. The PCA is highlighting the threats presented by a “cashless” future. High up the threat list are financial exclusion, loss of democratic rights and surrender of control over our lives to commercial companies and government.

The three principles of the PCA’s mission are:

Customers deserve a payment choice
: Whether it’s cash or card, customers should have the right to choose what works best for them.

Banks have a duty to support everyone: 
Financial services must not ignore the needs of vulnerable people; all communities deserve a free cash deposit and withdrawal machine.

We need innovation in the cash sector: 
People should be able to do more with their cash; the PCA is asking for better technology that gives everyone opportunities to use their cash when they choose.

Although the Financial Services & Markets Bill 2022-23 (currently in the committee stage in the House of Lords) goes in some way towards safeguarding access to cash, the PCA believes that the Bill does not go nearly far enough in terms of consumer choice as to how we pay for goods and services. It is therefore calling for a new ‘Payment Choice Act’ to require all businesses to accept cash for payments and stop the UK going “cashless”.

We work harder than ever for the money we earn. How we spend it should be our decision. Agreed?

Why is the use of cash declining?

During the pandemic many of us had less opportunity to use cash, particularly with internet shopping becoming far more common. Also, some of us found that when we did go out shopping, a minority of businesses were trying to force us to use other payment methods.

There is no doubt also that In the last few years there has been a jump in the number of consumers using “contactless”  and an increased use of digital payments, even though it is generally accepted that such payment methods induce us to spend more; and sometimes much more than we can really afford.

However, although a reported 75% of the British public still want to continue using cash, cash and digital ‘cashless’ payments are appearing almost everywhere, with payment choice denied. Customers are often not being allowed to use their cash.

Initially confined mainly to London, this trend is now threatening to spread countrywide. Even mainstream grocery stores are moving in that direction as self-checkouts sometimes don’t accept cash, similarly neither do an increasing number of retailers, bars, restaurants, transport services and pay and display car parks.

One of the problems is that banks are charging far too much when businesses want to make cash deposits. Banks are making cash artificially expensive.

Should banks be allowed to charge what they like for cash deposits?  Is that fair on businesses that give their customers payment choice by accepting cash?

Who would benefit from the UK going cashless?

Going “cashless” would be of great commercial benefit to banks already closing branches and removing ATMs. Those banks who currently meet the costs for maintaining the ATM network, which they don’t like. Banks like making money but not spending it to provide customer service. It would also benefit other big tech providers who make money from “cashless“ transactions and sell access to your personal data to anyone who wants to know all about you.

A “cashless” society would also give ultimate power to any authoritarian government, as people can be monitored and controlled completely through having their ability to spend restricted or removed entirely. This is already happening in some dictatorships but is this something you would expect to find in a democracy like Britain?

Why do we still need cash?

Cash is fast, convenient and an easy way to pay. It’s the only back up if technology for card and digital payments fail. We all know that internet connections in some areas are not very stable. Poor broadband and/or mobile connectivity and coverage, particularly common in rural areas, can cause issues when trying to make purchases digitally.

Those who are elderly, vulnerable or on a low income rely on cash more. If the UK went “cashless” then they could well be left without access to essential goods and services.

Many elderly and vulnerable people struggle with making online payments, causing unnecessary stress and upset. In contrast using cash is inclusive; anyone can use it regardless of technical competence or geographical location. It’s important to be aware, accommodating and accepting of differing needs and circumstances.

Those on lower incomes area already paying a ‘poverty premium’ through no fault of their own. If the UK went “cashless” they would be likely to suffer increased exclusion if access to cash-based financial products and services was withdrawn. Do you think this is fair?

Using cash gives you control of your finances and helps to avoid debt. You can’t spend it if you don’t have it and there is no danger of incurring any interest charges or fees for overspending. Jam jar or envelope saving plans are useful budgeting tools. You can separate disposable income in to separate money pots.

Research shows that we spend far more money when we can spend it virtually. Choosing to pay by cash helps you to avoid the urge to splurge on impulse purchases. Counting pennies in a good old fashioned piggy bank and accounting for each and every one can teach good saving habits. This cannot be done in the same way digitally.

Last but by no means least, cash protects your privacy as no need to share data and as such no danger of data breaches.

Do you want everything about you to be known, with everything you do monitored and potentially controlled?

Over 8 million people still rely on cash for everyday purchases and over 40 million use cash sometimes – but with ATMs closing at a rapid rate across the country ready access to cash is becoming more difficult. Urgent action is needed to ensure it doesn’t become impossible.

But even if access to cash is maintained, if businesses won’t accept it, customers will no longer have the right to choose how they pay; to exercise Payment Choice.

Do you support the call for a Payment Choice Act, requiring businesses to accept your cash?

You can find out more about the campaign on the Payment Choice Alliance website and I’d love to hear your views in the comments.

Please note that this is a sponsored post for the Payment Choice Alliance. Views and opinions may not necessarily be my own.