Is Cash King? Digital Payment Still Far Ahead As Global Society Fuels Importance

In the age of digital transactions and contactless payments, the recently released British Retail Consortium (BRC) annual Payments Survey for 2022 has turned heads by revealing a surprising uptick in the use of cash in the UK. This shift marks the first increase in cash transactions in a decade, raising intriguing questions about the evolving dynamics of the UK's payment landscape.

The UK has long been at the forefront of the global push towards a cashless society. Alongside Scandinavian trailblazers like Sweden and Norway, the UK has championed the adoption of digital payment methods, making headlines for its advanced and widespread use of contactless payments. Despite this, the BRC's latest survey shows that coins and banknotes constituted nearly a fifth of all transactions in 2022.

This resurgence in cash usage sparks curiosity, especially as Britain continues to lead in the digital payments realm. While countries like Italy and Germany maintain higher reliance on physical currency, the UK's penchant for digital transactions remains unmatched globally. The BRC's findings prompt reflection on the factors driving this renewed interest in cash.

One aspect not covered in the BRC report is the influence of international payments. In a country with a highly globalised market and a substantial population engaged in regular overseas travel and business transactions, the choice between cash and digital payments takes on new significance. The advanced digital payments infrastructure in the UK, with its familiarity with digital wallets, offers a clear advantage for those navigating the complexities of international finance.

The Monevium IBAN Account emerges as a key player in facilitating seamless Euro-denominated transactions. With secure two-factor authentication, this digital solution eliminates the inconvenience of ordering and collecting physical Euros from a bank or dealing with high commissions at currency exchanges. The Monevium IBAN Account empowers users to make Euro payments effortlessly and securely, aligning with the preferences of a digitally sophisticated population.

While the BRC's survey underscores the resurgence of cash in a fraction of transactions, it is crucial to note that this figure pales in comparison to the overwhelming majority of digital payments. In our highly mobile and digitised world, the convenience and security offered by digital transactions continue to shape the financial landscape.

In particular, the ease of connecting with European friends, relatives, and business partners has never been more apparent. The Monevium IBAN Account exemplifies the seamless integration of financial technologies into our daily lives, providing a secure conduit for Euro-denominated transactions without the need for physical currency.

As the UK navigates this nuanced interplay between cash and digital payments, the enduring relevance of cash, even in a digital-first society, highlights the importance of choice and adaptability in the evolving world of finance.

Monevium Ltd is a company registered in the UK under company number 10251711 and is authorised by the UK’s Financial Conduct Authority under Firm Reference Number 766038.