The cash or cashless debate is back in the news in the UK - most of the newspapers over the weekend gave space to a revival in the use of cash for transactions.
More than half of payments have been made by debit cards for the first time, but banks are not writing off cash just yet.
Cash transactions in the UK comprised 6.4 billion last year - up by 400,000. This has been put down to people feeling more comfortable using cash at a time when their finances are being squeezed; they consider it helps them budget.
UK Finance, who came up with the figures, said that in 2022 there were 45.7 billion payments made via one form or the other, up from 40.4 billion in 2021. Debit card use rose by 18 per cent to 23 billion, for the first time reaching over 50 per cent of payments.
In a statement, UK Finance, which represents the financial institutions, including the banks, said: “Growing fears about inflation and the rising cost of living have meant some people are making greater use of cash as a way of managing budgets.
"There were 21.6 million people who used cash only once a month or not at all in 2022, down from 23.1 million the year before.”
Adrian Buckle, head of research at UK Finance, said: “During 2022 we saw increased use of contactless, online banking and mobile payments, although cost-of-living challenges meant that some people preferred to use cash to help with their budgeting.”
