Britain’s rapid shift towards a cashless society is leaving millions at risk of being caught short when payment systems glitch, new research warns.
Fewer than half of people (48%) consider carrying a physical wallet as part of their daily routine. Although more than four-fifths (82%) still own a wallet, many are now left unused in drawers as consumers increasingly rely on cards, smartphones and smartwatches to pay. According to the study by Cash Access and ATM Network Link, the generational divide is stark. People aged over 45 remain attached to physical debit cards, while younger groups aged 18 to 44 are far more comfortable with digital wallets.
Among 35 to 44-year-olds, almost three in 10 typically leave home with only a digital wallet – a habit shared by one in nine UK adults overall.
But this dependence on digital could leave people exposed. Six in 10 (61%) have experienced payment failures, leading some to abandon purchases altogether or rely on others to pay on their behalf.
The research also found that some people may be relying on a limited choice of payment methods, which could leave them without a backup payment option if they are unable to use them. Among those using digital wallets, 40% only had one card set up, and 60% carried no physical alternative.
Meanwhile, 7% of Britons said they do not carry cash at all, and almost a quarter keep none at home.
Adrian Roberts, deputy chief executive of Link, said: “Our research shows that growing reliance on digital comes with growing risk. Recent experiences from around the globe have demonstrated that digital payment systems can fail and two-thirds of people have faced some form of disruption already.
“It is therefore vitally important that the UK maintains a breadth of payment methods.”
He added: “We also need to think about cash acceptance and how it can be made easier for retailers to continue to accept it in shops.
“In parallel, digital payment systems need to be stronger and more resilient and the work led by the Bank of England on the National Payments Vision is an excellent step in that direction. Individual consumers can also take simple steps to protect themselves should there be a disruption to digital payments.”
To reduce the risk of being stranded, Link suggests practical steps:
- Consider maintaining a cash reserve.
- Have a diversified range of payment networks to choose from.
- Consider using multiple digital wallets.
- Do the basics – sign your cards and know your Pin.
- Understand your contactless payment limits.
- Consider whether having an alternative current account and banking app could be helpful.
- Make sure you can access a portable charger, if needed.
