Stay tuned with CashEssentials news ! - beyond payments
By subscribing, you accept our Privacy Policy.
×
×

UK: Cash Usage is on the Rise

Categories : Cash covers a broad range of transactions, Cash does not require a technology infrastructure
January 24, 2025
Tags : Access to cash, ATM, Commercial bank, UK
Post-pandemic, UK cash withdrawals have stabilized, but Nationwide Building Society saw a 10% increase in ATM usage in 2024. This rise is due to bank branch closures and the cost of living crisis, pushing more people to budget with cash. Nationwide's extensive branch network supports this trend. The British Retail Consortium reports a two-year increase in cash transactions, highlighting cash's importance in budgeting despite the prevalence of card payments.
Guillaume Lepecq

Chair, CashEssentials

Data from Link, the UK ATM network, reveals that the total volume of ATM cash withdrawals has remained stable over the past four years (2021-2024), following a sharp decline in 2020 due to the Covid-19 pandemic. Notably, these figures do not include withdrawals made by customers at their own banks’ or building societies’ ATMs.

Source: Link


Nationwide see Cash Withdrawals Grow for the third Consecutive Year

One financial institution stands out with a significant increase in ATM usage: Nationwide Building Society. For the third consecutive year, Nationwide has reported a rise in ATM cash withdrawals. In 2024, Nationwide recorded approximately 32.8 million cash withdrawals from its 1,260 ATMs and 605 branches, marking a 10% increase from 2023. The average amount withdrawn per transaction was £112.

Nationwide ATMs

Source: Nationwide

The surge in ATM usage at Nationwide is partly attributed to widespread bank branch closures across the country, which have led to the removal of vital free services from high streets. This situation has driven a 16% increase in withdrawals from non-Nationwide customers and a 4% increase from Nationwide customers seeking cash access. Unlike major banks, Nationwide has not closed a significant number of branches in recent years. The institution has reaffirmed its commitment to communities by maintaining face-to-face services, with its Branch Promise ensuring that every branch will remain open until at least 2028.

“The rising cost of living continues to impact people, and many are opting to budget with physical money to avoid getting into debt. Nationwide has the largest branch network in the UK, allowing us to support customers who want access to cash, whether from our ATMs or over the counter. The major banks have closed branches in towns and cities across the country, taking away many of the free ATMs that people rely on. This is why the biggest rise in withdrawals comes from non-Nationwide customers. The resurgence of cash shows why we need to continue having a physical presence on the high street, enabling customers to access their money on their terms, whether digitally or in branch.” Otto Benz, Director of Payments at Nationwide Building Society

Cash Payments are also on the Rise

According to the British Retail Consortium (BRC), cash usage has increased for two consecutive years, in 2022 and 2023. Cash accounted for 19.9% of transactions in 2023, up from 18.8% in 2022 and 15% in 2021. The BRC attributes this shift to persistent inflation and the cost of living crisis, which has led many consumers to use cash for more effective budgeting.

Cash remains a vital form of payment for a sizeable minority of the population, particularly for budgeting purposes. This has made it important for many households during the recent cost of living squeeze. All large retailers are committed to accepting cash in their stores, which has a lower processing cost than other forms of payment. The new FCA rules introduced this year to support consumers’ continued access to cash are welcomed. However, the dominance of cards as the preferred payment method highlights the urgency for reform on costs. British Retail Consortium

Related