Half of people are using less cash than they were pre-Covid, according to new research from Link, the UK’s main ATM cash machine network.
The research, which looks at Covid-19’s effect on consumers’ attitudes to cash, shows 25% of respondents say they are using the same amount of cash and 4% are using more.
The latest research shows the number of consumers using cash in the past two weeks has now increased to 73%, the highest-level LINK has recorded during the pandemic.
The research also showed a change in where people are using cash. Locations which are showing increasing usage are supermarkets, other retail, services like hairdressing and most especially pubs. Locations that have shown very little change are convenience stores, fuel, DIY stores, and parking.
In addition, the research shows that while overall ATMs were 20% busier this varied a lot across the network. Town centre ATMs were 50% to 60% busier and airport ATMs around 200%, but convenience stores were barely changed, probably because people kept using them right through the pandemic.
Graham Mott, Director of Strategy at LINK, said: “Our view is that ATM use will never return to pre-pandemic levels and that people who perhaps were using less cash generally are now entirely comfortable using their phones or contactless. That being said, we’re still seeing £1.5bn withdrawn from ATMs every week. That’s still a lot of money and there are a lot of people who rely entirely on cash.
“Looking ahead, one new development and one we will be monitoring carefully, is that 8% of people say they are going to use more cash to budget and save because of rising living costs. We understand that people are far more comfortable using technology, but importantly, not everyone can use digital and perhaps there’s no better way to budget than notes and coins.”
