The cash payments in the UK comprised 52% of total transactions, emphasising the strong role of cash in the market, according to a report UK Cash & Cash Machines 2014 by the Payments Council.
Nearly 19.9 billion cash payments were made during 2013 accounting to a total value of £260bn, a meager drop from last year that witnessed 20.8 billion cash transactions of £267bn value.
Go deeper with GlobalData
The agency believes that the high cash usage is partly because the practice helps people in monitoring their day-to-day spending and budget effectively during the economic downturn of the past few years.
Payments Council Cash Services head David Hensley said despite speculation on declining cash use the reality is that the majority of everyday purchases are still made in cash, particularly for low value items.
"Our role is largely behind the scenes, helping to keep the cash wheels turning and supporting our members and their customers, the Bank of England and The Royal Mint. Cash is important to people and we need to make sure that it is fit for the next generation," added Hensley.
Meanwhile, the usage of ATMs has remained the most popular method for acquiring cash, evident from 2.8% ATM network growth to 67,963, as compared to 2012. Of these, 48,012 were free to use cash dispensers, which in turn recorded 98% of total withdrawals.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataOn average £66 was withdrawn per visit, the report revealed.
LINK CEO John Howells said: "Access to cash is vital for the majority of UK consumers and LINK is committed to providing a convenient and safe national network of cash machines to support this need. Continued investment and innovation in the ATM network is a priority for LINK to develop this important national service."
