Cash use set to survive despite slump during pandemic – report

Its use is expected to drop to just 6% of payments by 2031, UK Finance said.

18 August 2022

Cash may no longer be king but its rapid decline in use during the pandemic has at least eased, according to a report.

Trade body UK Finance said many people were forced to use alternative ways of spending due to lockdowns and other Covid restrictions.

Customers have continued paying for things with cash, the organisation’s report said, though its use is expected to drop to just 6% of payments by 2031.

UK Finance said: “Rather than the UK becoming a cash-free society over the next decade, the UK will transition to an economy where cash is less important than it once was but remains valued and preferred by many.”

The trade body earlier reported credit card spending had shot up by a third as more people turn to borrowing cash amid the cost-of-living crunch.

UK credit card holders spent just under £20 billion in May, a 33% jump in the total spend compared with the same month last year.

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