Highstreet refusal to accept cash - how is it affecting older people?

As financial advisers, we’re seeing first-hand how the decline of cash is impacting older clients, many of whom rely on physical money for budgeting and feel uneasy using digital payments. Some find contactless transactions confusing, while others worry about fraud or simply don’t have access to online banking. To navigate this, we encourage clients to explore basic banking options, like prepaid debit cards or cash-friendly local businesses, and we help them set up secure payment methods where needed. However, businesses refusing cash can leave vulnerable individuals excluded, so we fully support initiatives to ensure cash remains a viable option on the high street

What was once a simple purchase at the local cafe now requires digital proficiency that many do not have, as for many, cash is not just a convenient way to pay but an essential tool for managing their finances and maintaining independence. Older consumers collectively account for a substantial share of discretionary spending in sectors such as retail and hospitality, so this move towards a cashless economy risks cutting off their ability to spend freely. Cash transactions are particularly important for local economies, so while businesses prioritise digital efficiency, they may be overlooking the spending power of the very consumers they are excluding. Consequently, many advisers have found themselves not just managing wealth but also managing accessibility and providing education on digital financial safety, especially as banks continue to close physical branches and more clients are hesitant to transition away from cash due to concerns about online fraud.

Major chains like Gail’s and Zizzi ditching cash is no small problem with 2.4 million over-65s hooked on notes per Age UK and 1.5 million UK adults using cash daily in 2023, a four-year high according to the FCA. The clash between cashless trends that suit the vendor (security, fraud, storage) and clients’ needs is stark. Legally, shops can refuse to take cash even though it’s legal tender. Neither the government nor the Bank of England seem inclined to change the law to make it mandatory to accept cash. However, if enough customers take their business to chains that do accept cash, the economics may soon tell on those that don’t. As far as most of my clients are concerned, cash may be old-school, but it’s still got swagger!