Cash is still king for UK retailers

Cash keeps the tills ringing for the UK’s retailers as 42% say they prefer cash above all other forms of payment, according to Alliance & Leicester Commercial Bank’s Cash Survey.

In contrast, outdated cheques are preferred by just 12% of retailers and even debit cards are the chosen method for only 24%.

This highlights the crucial role cash continues to play in the UK retail sector, as almost a quarter of a million (230,000*) retailers across the country declare “cash is still king”.

A&L's Cash Survey also reveals that almost two thirds (63%) of small and medium retail businesses view dealing with credit cards and cheques as too expensive and half (49%) think cash is both cheaper and easier to manage.

The humble coin and note is still very much the lifeblood of the retail industry with 53% of businesses handling more than £100 in cash every day.

The extent to which UK businesses are banking on cash is highlighted by the fact that one in three of retail businesses surveyed said that if customers stopped making cash payments it would have a negative effect on their business. A whopping 49,000 retailers even fear they would be forced to close down without cash payments.

Speaking on the bank's survey, Russell Carter, Head of Cash Marketing at Alliance & Leicester Commercial Bank, said: “Our research highlights that cash continues to play a critical role in the retail industry. Nearly a quarter of a million retail businesses in the UK prefer to deal in cash and 170,000 retailers rely on it to maintain a successful business, thereby proving that cash very much remains the lifeblood of the industry.

“With monthly cash intake figures for the industry as a whole reaching the £8 billion mark, it’s important that retail businesses choose a bank account most suited to their needs and avoid unnecessary cash handling charges.”

Retailers’ preferred method of payment:

Of the following methods of transaction, which do you prefer most for your company?

Cash 42%
Cheques 12%
Debit Card 24%
Credit Card 15%
Don’t know 7%

Alliance & Leicester handles more than £1 in every £5 of High Street cash for UK businesses. They offer 2 years free banking for new businesses.

For existing businesses they have a free bank account that gives free cash deposits up to £1,000 a month. Click on the relevant link for more information and to download an application form.