Future Forum | Bank of England

Take part in our Cash vs Cashless Challenge

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Future Forum
Future Forum | 3 months ago | in Money, Money, Money

Help us to understand how and why you make payments the way you do!

We want to explore the future of cash, but first we want to know how and why people choose to pay in different ways today. 

To help us understand this we are tasking the people of the UK to undertake our Cash vs Cashless Challenge for a week.  

How can I take part?

  • It's simple...If you usually pay with cash, we're asking you to go cashless (this can include debit/credit cards, Apple/Android Pay, cheque etc.);
  • and for those who are usually cashless, we challenge you to use only cash for a week.
  • We would like you to log your experiences of the week, and then please share them with us by commenting below.

What would we like know? 

  • Why do you choose to make payments the way you do?
  • How easy/difficult was it to make payments in the opposite way to normal?
  • What/where were the main challenges or benefits?
  • Has the experience changed or cemented your views on how you will make payments in the future?

Please share any key examples with us too! We'll be reviewing all of the feedback received to help us understand any trends in the way people choose to make payments, and how this might help shape the future of money.

edited on Oct 31, 2018 by Future Forum

Robert Taggart 3 months ago

Larger purchases and bills I pay with card or online (card). Smaller purchases made in person I use cash. I would use cards more, but, many retailers (particularly small ones) either charge a fee, or, as often as not, do not have the card reader required. Wishing Blighty was a cashless society - cards are so much more comfortable in the pocket and a lot less fiddly! Perhaps if retailers were to be penalised (by either their bank or some tax) for the handling of cash AND any such penalty they pay for the use of cards was to be abolished - things may change?

Stefanie (BoE Moderator) 3 months ago

You're right that the smaller businesses do still charge a small fee - a bit like some ATMs do so, like you, I do still carry cash around for that reason. When I go abroad, I now take everything on a card and take £100 in cash for the smaller shops as it is the same situation in Continental Europe. The only place I found that not to be the case was Norway - absolutely no one wanted cash. I remember trying to pay in Krone and being given a truly horrified look!

Ian Collier 3 months ago

Yes, a small number of ATMs do charge a fee. Outside the UK it is very common that one gets charged a fee if a drawing is made fom an ATM not provided by one's own bank.
The reduction of cash useage (de-cashing) will continue and the unit cost of providing cash will increase.
How long do readers think it will be until all ATMs make charges for accessing one's own money if drawn in cash?

Robert Taggart 3 months ago

Forgot to mention the hygiene matter.

Ian Collier 3 months ago

Is it really true that many banknotes have traces of drugs?
Polymer notes look and feel cleaner and cannot me rolled up for unhygenc usage.
Coins however are dirty.

Shenaid (BoE Moderator) 3 months ago

Interesting points. I rarely have cash on me, so often end up paying the card fees - whatever they are! Small corner shops even have minimum payments to be able to use your card.

Earlier this year the government banned credit and debit card fees on purchases (https://www.moneysavingexpert.com/news/2018/0...from-saturday/) and I've found that this has really helped reduce hidden fees.

Chrissi Branson 3 months ago

I thought charging fees to use a card was outlawed a few years ago.

Shenaid (BoE Moderator) 3 months ago

You're right Chrissi! They banned charging fees in the UK earlier this year https://www.moneysavingexpert.com/news/2018/0...from-saturday/

However, some smaller shops have minimum payments on cards. Some ATMs also charge to use it.

Robert Taggart 3 months ago

Speaking as a mere punter!... it is only the little retailers who are the 'roadblock' to a cashless society. Something needs to be done to perhaps penalise them for remaining 'luddite'? Methinks persuasion itself will not suffice??

Ann (B of E moderator) 3 months ago

Portable card readers are reasonably priced and now widely available which may encourage small and mobile retailers to use them.

PhotoGuy 3 months ago

Retailers are charged for accepting cards so many retailers understandably have to have a minimum payment for paying with card otherwise a significant amount of their profit will dissappear in card fees for small transactions (the fee is usually a percentage but there is a minimum fee). Card payment machines have fallen in price but the more robust 'business grade' units are still quite expensive & take a while to pay off. Aternatively they can lease them (but either way would also have to pay a maintenance charge in case it needs repairing). The costs of all of this are disproportionately high for small retailers compared to large national stores. Smaller independent stores either have lower profit margins than large stores who buy in large quantities or they have to charge more which makes them less competitive. Either way it's often a struggle for small retailers to survive so forcing them to remove the minimum charge for cards or peanalising them for taking cash would only benifit the large retailers who are better able to absorb those costs. Personally, I think as much as possible needs to be done to support the smaller independent retailers as they are what helps make towns & cities unique rather than rows of shops that you can see in any other town & city.

Robert Taggart 3 months ago

@PhotoGuy, indeed, so - what to do in order to bring the small businesses on board?

ScottT 3 months ago

Robert, it became illegal a few months ago for businesses to charge customers a fee for paying by card. Also most business bank accounts will charge a monthly fee and often for for making deposits and withdrawals, also most business would be for a security company to collect the cash. So businesses already get “taxed” for handling cash. Also businesses will be charged a percentage plus minimum fee normally around 30p per transaction for each card transaction.

Dave Painter 3 months ago

It became illegal for a retailer to pass on the card fee to a customer. Sadly the government forgot to make it illegal for the card companies to charge more for a transaction than taking cash.

ScottT 3 months ago

Robert, it became illegal a few months ago for businesses to charge customers a fee for paying by card. Also most business bank accounts will charge a monthly fee and often for for making deposits and withdrawals, also most business would be for a security company to collect the cash. So businesses already get “taxed” for handling cash. Also businesses will be charged a percentage plus minimum fee normally around 30p per transaction for each card transaction.

Ian Collier 3 months ago

London Black cab drivers say they take card but isn’t it amazing how often their card machines are out of action?

Ian Collier 3 months ago

Why are london black cab’s Card machines so often “out of action”. I wonder if anyone can offer a reason? I do love UBER

Ian Collier 3 months ago

It costs banks heavily to handle cash, but it’s cheap for them them to handle money electronically. Nevertheless they charge retailers more for electronic payments. This cross -subsidy will continue whilst retailers don’t mind spending the extra because they understand how costly it is for them to handle the cash.

Ian Collier 3 months ago

Big supermarket offer “cash back” in order to get cash out of their tills even though they still have electronic payment charges. They understand the true cost of handling cash

Shelley (BoE Moderator) 3 months ago

Thank you to everyone's comments ont his post. It is really interesting to hear your views.

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Rasika Dissanayake 3 months ago

I was in the industry for long enough.

The problem is not with small corner shops but with large acquirers. While the large retail chains pays a small interchange, small businesses have to pay a minimum 35p -50p when they sell a can of Coke.

However for a £ 250.00 transaction, your bank will pay the ATM owner 25p if cash is withdrawn and the corner shop will get the value of the transaction on same day.

Usually they are being reimbursed t+3 ( 3 days after the transaction) while the large companies enjoy t+1 ( next day credit) . the merchant acquirers enjoy a massive float of funds ( other peoples) by t+3 industry practice in UK.

I agree that their was a rip - off but at every stage of the process.




Pet Kat 3 months ago

I live by the seaside and my favourite 2 cafes can't take

Pet Kat 3 months ago

I live by the seaside and my 2 favourite cafes can't take cash - no connectivity. My nephews have got 2 an age where the like cash as presents. Not quite the same when they get a card saying I've put some money in your mum's account. Get it off her.

Ann (B of E moderator) 3 months ago

You make an interesting point Pet Kat about regional variations in connectivity issues. Does anyone have similar problems where they live ?

Dave Painter 3 months ago

Yes, as a mobile retailer I have found many places outside of city centres to have insufficient mobile phone signal to run a card reader. Lancashire, Yorkshire, Cumbria and Southern Scotland being the most recent.

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Shelley (BoE Moderator) 3 months ago

I'm on day 3 of only using cash and I will admit i am getting a tad frustrated!
I feel like i hold up lines in shops while figuring out what cash i have, swipe and go for convinence is easier.
My purse is bulging with coins, and i keep dropping notes that fall out! However, I do realise how much money i am actually spending more. Usually 'swipe and go' you don't pick up amounts until you check your account.
It is harder for me that i first thought it was going to be. I am out tonight with friends for a meal, I do wonder if I will be the only one paying by cash (usually something i would not pick up on).
I will continue to report back - it might get easier for me. I'm so used to be cashless, that it has thrown be a bit.
Florence - how are you getting on?
Has anyone else taken up the challenge yet?

Florence (BoE Moderator) 3 months ago

Hi Shelley,
Also on Day 3 but gone cashless.

Day 1 was straightforward, doing chip and pin or contactless.

Day 2 yesterday turned to be a bit annoying. At one point I needed to pay for my parking and came very close to quitting on the challenge!
I tried to pay by phone and card first. But the voice recognition system could not make out the N I was dictating for my number plate and the computer kept playing back that it had heard an M.... Failing to enter my number plate correctly by voice (I have an accent and voice recognition has always been useless for me) I persevered and after 20 minutes of downloading an App and registering I managed to pay online just the £1.

Day 3 is looking good so far. I am going to my lino printing class to a small local art gallery this evening. This was paid by bank transfer a while ago. They have a great payment system which is environmentally friendly - you can get your receipt by email rather than printed on great wads of paper! I might talk about that on Twitter tonight. I have documented every day so far on our regional agency Twitter account @BoECentralSouth too.

Have a lovely evening. may be catch up Friday on how our challenges are going? How is everyone else cash only or cash less week going on?

Shelley (BoE Moderator) 3 months ago

Ah fantastic Florence! Annoying about the car park for you though. Yes let's catch up Friday on how we are doing.

Ian Collier 3 months ago

I always use an App to pay for my parking wherever I can.
I get frustrated when I come across a street where they don't take any of my parking Apps.
Of course , in due course, it will be the way nearly everyone pays for parking, a little like cashless public transport. Some people have already reacted to this innovation, others will take more time and some, without an enormous amount of encouragement, would never transition.
Those slow to accept change will inevitably suffer as the rest of us embrace the new technology which is why a government sponsored transition programme should start immediately because otherwise those already disadvantaged are just going to become even more disadvantaged.

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Ian Collier 3 months ago

Contactless payments in london busses have reduced the time for boarding busses and stopped drivers getting mugged for the fares.

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Gemma Jarvis 3 months ago

I use cash for >£100 per month of outgoings (personal and family) - mostly to pay for items for my children such as Tennis Lessons and topping up pocket money. Everything else I pay for via direct debit, bank transfer or card. I find that if I have cash in my purse I spend it fair less wisely than if I have to use a card to make the purchase

Ann (B of E moderator) 3 months ago

That's interesting Gemma as I find I am far more careful with money when using cash! I find it far too easy to 'tap and go'

Shelley (BoE Moderator) 3 months ago

I'm the same Ann - being only on cash this week has made me more aware of the cost of things for sure!

Sudip Chattopadhyaya 3 months ago

I agree with you Ann in a way, because paperless transactions could be impulsive. On the other hand, the downside of the cash payment, in my case, is that the cash expenses are often unnoticed and unaccounted. These expenses are not allocated to any expense category in my personal finance app and are just being categorised as cash withdrawals.So at the end of the period (week or month), I am faced with a challenge to remember where the cash had been spent. For me the lack of effective controlling and monitoring of the cash expenses is one of the principal reasons that I prefer using plastic money.

Shelley (BoE Moderator) 3 months ago

Interesting point Sundip! I never thought of it that way - especially with banks now able to update apps to categorise your spending. For example, I believe it is banks like Monzo and Starling that report to the user monthly on how they are spending there money - food & drink, retail, etc. I can imagine this is a good way to monitor your spedning. So Sundip I understand what you say, if it comes up as 'withdrawal', unless you keep receipts it will be a challenge where you are spending.
Thank you for sharing!

Ian Collier 3 months ago

think that generally people are more abstemious in spending money with cash than on card as they actually witness it disappearing. However, this is a matter of conditioning, although older people and those less able to understand their finances will continue to struggle with.
I suspect technology can be the answer. Oyster cards show how much remains after every use.

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Florence (BoE Moderator) 3 months ago

Day 5 of my cashless challenge.
Yesterday was easy. I did every payment by debit card. Even the sandwich vendor in our office block in Fareham has a contactless card machine. This morning, I went online to do a couple of bank transfers. All very straight forward. How are you getting on with you cash only challenge Shelley?
One thing I browsed briefly on the net was around which areas of the UK are at the forefront of contactless. I don't know how reliable the sources of info. I found were, but for what it is worth, some of the places mentioned beyond London included Birmingham, Brighton, Bristol, Hull, Leeds, York...
I wondered if there are people on the platform from those areas who could share their cash only or cash less challenge experiences?

Shelley (BoE Moderator) 3 months ago

Well done Florence! As suspected at the end of Day 3, I was the only one who paid with cash in the bar and restaurants. Not something I realised before. It has been something that i have become more aware of - who is using what around me. I am more aware, like mentioned, on how much i am spending.
Day 4 was straight forward and Day 5 I am working from home, so suspect that will be easy too.
Although i do have to admit that I only realised this morning i have been using my oyster to commute, which is on automatic top up. So i did not go cashless with my travel! Sorry - as i said it didn't even click until yesterday.
Looking forward to the final part of the challenge over this weekend. I'll report back on Monday!

Cayenne 3 months ago

I work in London and live in the commuter belt of Surrey. I seriously considered giving this a go, and then realised that being cashless is so ingrained in my life, it'd be impossible! I commute to work and our local buses and the trains do not take cash payments, you have to pay contactless either with oyster or credit/debit card. The shop near my office where I buy lunch frequently, doesn't take cash because they've had too many robberies so it's now card only. I probably go to a physical shop once every two months or so, and do all of my shopping online, because by the time I get home from work the shops are closed. As are the banks for larger cash withdrawals. And I travel on the weekends. I often have to send money to friends for ticket purchases etc when it comes to entertainment, and wouldn't want to make them wait a few weeks until they saw me to hand over the cash.... All in all, I guess going back to cash would mean a huge lifestyle change (and wouldn't be possible for transport at all). I recently had some cash on me and paid for my breakfast with it, and the guy in the coffee shop looked at me like he had no idea what a £10 note was before finally remembering what to do with it - everybody just taps and goes in the rush hour coffee queue! I withdraw cash maybe once every 3-4 months, and when I do have cash in my purse a £20 note will sit there for weeks because I forget paying that way is even an option!

Shelley (BoE Moderator) 3 months ago

Thanks for sharing Cayenne - this is very interesting! I am usually the same when i have cash in my purse, generally i forget it is there!

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Pet Kat 3 months ago

I have been using my contactless card all week but as I wanted to buy a Big Issue on Wednesday that was cash payment. I also visited Bury market today. I always bring cash when shopping there as I assume not all of the stalls will have card machines.

Stefanie (BoE Moderator) 3 months ago

Yes, there are still certain situations that aren't conducive to using cards, I do wonder if there will always be some cases which need cash - for example, in the situation you described, you can't expect a homeless person to carry around a card machine!

David888 3 months ago

Why not?

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Shelley (BoE Moderator) 3 months ago

I survived the week.. just! So i did 7 days of only using cash (except, as previously mentioned, my oyster card) and I only barely survived. Although easy enough to get cash out and pay for items, I did notice people get 'frustrated' when others pay by cash. It felt like I was not 'fast' enough for them and holding them up.
I did notice how much I spend on items, more than i ever have with card.
See my previous comments above about day-to-day survival. The weekend went well - however I think i only escaped any issues as i did not buy anything online and when i went out for a family meal on Saturday, I didn't pay.
But looking ahead to this week, I'm glad I can go back to using my cards!
Florence - how did the weekend go for you going contactless?

Florence (BoE Moderator) 3 months ago

Hi Shelley,
Overall, my cashless week challenge has been pretty straightforward.
While out and about, I was able to pay for the vast majority of things by card either through chip and pin or contactless. For the regular transactions for the house (e.g. council tax or utility bills) everything is set up on bank account through direct debits. On the less regular transactions, I did a couple of bank transfers online.
That said, at the weekend there were two transactions, where only one means of payment was possible. On Saturday, I paid my Dartford Tunnel crossings online - you can't pay the crossing by cash. The only time I had to resort to cash was when I paid for my poppy, as this was the only way I could get one and show my respect.
Doing the challenge was good fun and helped me think through my payment habits and what I spend.
I'd love to hear about others doing the challenge this week!

Shelley (BoE Moderator) 3 months ago

Great stuff Florence - well done!

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Rasika Dissanayake 3 months ago

My week without cash was not a big issue, though the local coffee shop did not appreciate paying £ 2.00 by card.

However I lost a track of my expenses by the middle of the week and felt like I was over spending.
But two instances where cash was essential was

1. When paying my Thames Water monthly bill. I do not have a water meter and the service provider has issued me with a pay point pay card where only cash is accepted at the local news agent for such payments.

2. When I asked my son to run to the supermarket where I had to give him my card and PIN :)


Shenaid (BoE Moderator) 3 months ago

I've also found it difficult not carrying cash around with me all the time and someone has offered to get me something from the shop! I usually end up just accompanying them.

Florence (BoE Moderator) 3 months ago

Dear Rasika, thank you so much for sharing your experience of your cashless challenge. We'd love to hear from others who have gone cash less or cash only last week or from those who have started their challenge this week!

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Catherine Stewart 3 months ago

Don't know if I am brave enough to go back to cash payments. I love contactless payments. Coffee in the morning- bleep, slimming class - bleep, lunch - bleep. The only times I have issues with needing cash recently was church collection at remembrance service, buying a poppy and buying a card for my nephew (for some reason the high street store wants cash only).

Chrissi Branson 3 months ago

The High street wanted cash only for either reasons of card machine down or not having a card machine due to costs.

PhotoGuy 3 months ago

Buying a poppy highlights the need to keep cash as it just wouldn't be viable for every charity collector to be issued with a portable card device. For something as cheap as a poppy, the card fees (& 3G mobile data costs) would wipe out the donation. A system for card 'micropayments' (small fees) with no processing fees has been mentioned in the past, maybe it's time to implement such a system.

Shelley (BoE Moderator) 3 months ago

Thank you for sharing Catherine. I will admit the convience of card / contactless makes life similar... until you need cash! Just like you have mentioned with the examples in your post. Thanks again for sharing - but don't be too scared to try the challenge.

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Samantha Button 3 months ago

While I normally have some cash in my purse the majority of the time I used my card or contactless payment. I only normally use cash to pay for my

Shelley (BoE Moderator) 3 months ago

Hi Samantha, I believe some of your post has not come through. Do you want to try again?

Chrissi Branson 3 months ago

Loving using cash for everything. Why as I know how much l have in my purse an what l can spend. I normally use debit card but also know how much I have on it. I HATE contactless.

Shelley (BoE Moderator) 3 months ago

Thank you for your comment - I can understand that concept. Where i did just cash for the week last week, I was more aware on what i was spending, than i ever am when i use card! Glad I'm not the only one who notices this.

Chrissi Branson 3 months ago

Even with card I know what I have. Its just easier for me to do one or the other. I Love having cash tho as I can do more like not struggle home with bags as taxis don't take cards. Also I can still shop or do stuff when the card machines go down as at least once a month the card machine go down.

Shelley (BoE Moderator) 3 months ago

Thank you for sharing Chrissi!

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Chrissi Branson 3 months ago

BoE.
What are your thoughts on Contactless cards being easily able to be cloned and can be done via stuff brought of the internet and banks saying its not there responsibility to make sure contactless is safe.

Shelley (BoE Moderator) 3 months ago

Good question Chrissi! Please feel free to post your questions to the Governors on there blog pages on the forum, and they will try there best to answer all questions. We have Dave Ramsden answering questions later this week!

Chrissi Branson 3 months ago

Could you link the governors blog in please as i cant seem to find it.

Shelley (BoE Moderator) 3 months ago

https://bankofenglandfutureforum.co.uk/post/627580?forPhase=23041

Ivoni Mataj 3 months ago

Hi Chrissi,
This is a fair point. In my view all options are associated with risks. I don't trust ATMs and am reluctant to use them in certain places, so I would rather use a card regardless of the amount (in this occasion).

Chrissi Branson 3 months ago

My sister got scammed less than 24 hours after having her card. The Monday she came home from work to her new card being there. The Tuesday she went to the bank to hand her old one in for destroying. She used the cash machine to get her bus ticket money out then walked to the bus stop. All was fine brought the ticket the next stop some bloke got on and was acting normally. Walked up the bus with a scanning machine up his sleeve. He swiped every person he walked past. 2 days later my sister got a call from the bank asking her re transactions she went to the bank that day. She had been nearly wiped out of funds. They had been spending money in a different area to where she lives. Even while in the bank talking to the member of staff they were making transactions on her account. The bank only refunded her a portion of the money. They said it was HER fault as the card was not wrapped in foil as it was not secure. The guy was caught from the buses cctv and he said that he brought the items to make the scanner off Ebay an in theory its the banks own fault as they were warned the cards were not safe but they ignore it. The judge agreed with him but still had the give him a prison sentance due to him breaking the law.

Shelley (BoE Moderator) 3 months ago

Thank you for sharing your experience and sorry to hear this has happened to your Sister.

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J W 3 months ago

I work in retail. I find it very annoying when people use a card to pay for low-cost items, such as a stamp that costs 58p. Using a card for everything is just lazy and doesn't make you think about what you're spending. I prefer to pay for things in cash. I get out a certain amount each week. You can see exactly how much you have left in your purse. It feels different when you pay in cash, as if it actually means something. If you pay by card it's not real and it's easy to overspend as you don't "feel" the spend in the same way. The other advantage of cash is you can spend it in more places. Banks charge small sellers too much to process card payments, so many don't take cards, which is fine by me. Also, if you have cash it means more than just a number on a screen. A lot of older people really struggle with cards. It's vital that we keep cash going. Cash is useful when networks go down and you can't use a card...as happens quite often in the UK.

Shelley (BoE Moderator) 3 months ago

Thank you for your views on the Cash v Card concept. It is interesting to hear what others think. I think it can be personal to everyone, which makes all these posts interesting to read on how everyone is different. Thanks again for sharing!

Chrissi Branson 3 months ago

Another thing l have found with cards is that everyone is taking a cut of the money. eg the bank and visa/mastercard. They dont provied these services for free. This is on top of the card fees. With cash the retailor keeps hold of it and it stays within the community longer as its not going towards fees.

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Claire Doxey 3 months ago

Prefer cash to card. I know exactly how much I have to spend and if I haven't enough then I don't have it simple. I don't have a card since they introduced contactless, much too easy for someone to steal your card and use it.

Shelley (BoE Moderator) 3 months ago

Thanks for sharing!

TriciaBruce 3 months ago

Hi I join the challenge keen to encourage the use of apple pay, which is my default. I just dont have cash on me any more. Why would i, need to carry it, it rattles, i never have quite the right chnage so get more back, i hate copper coins, they are pointless, switzerland had already made 5c their smallest coin years ago.

Sorry, just not prepared to use cash for a week, i know how much i hate it.

Shelley (BoE Moderator) 3 months ago

Thank you for sharing. When we are talking about cash v card - we are including Apple pay and other pays of paying 'contactless-ly'. Thanks again!

Stacey Corner 3 months ago

There is one corner shop near me that will only take cash but it does have a free cash machine. For almost everything else I use my Apple Pay on my phone. It is even better now that it doesn’t have a limit in most places. As I only carry a small amount of cash on me at any one time it wouldn’t be practical for me to do the challange as I know I wouldn’t be able to stick to it as I can’t always get to a cash machine.

Shelley (BoE Moderator) 3 months ago

Thank you for sharing. I understand you can't take part int he challenge, but thank you for taking the time to share what your usual habits are and why the challenge would be difficult for you. This is still interesting. Thanks again Stacey!

Jamie Lancaster 3 months ago

This is such a rigged debate, as the people who rely on cash probably don’t even know this question is being asked? The elderly, the vunerable and the sick, to name but a few groups, use cash and probably few see an online discussion. Cash has been the back bone of our economy for thousands of years, albeit The Bank of Rngland has existed for only hundreds of years. It really grates that a debate exists, as even if cashless sales grow, money will be needed for the more economically challenged sales areas, your market stall areas, your window cleaners, milkman and the like. Please don’t forget that on each note you state that ‘you promise to pay the bearer on demand the sum of .... pounds’. Cashless society will put you out of a job perhaps, or will you just create some Totalitarian state?

Shelley (BoE Moderator) 3 months ago

Thank you for your views and comments. I understand your view and there are other things the Bank is doing to reach others views for the extact reason that not all will see the Forum. We are working with banks, organisations and schools to seek out views on what the future of money looks like to them. Such as the Money Advice Service. There should be feedback soon from our further work on others views.

Chrissi Branson 3 months ago

Not true Jamie. My elderly Aunt has been made aware of this she uses the internet and uses a card for all her purchases. Its a no choice for her as the local bank has closed down and so has the local post office meaning she cant carry cash unless she walks the 25 miles to the local bank or 15 to the local post office. She lives very rural.

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Robert Bowers 3 months ago

Contactless, Contactless, Contactless!!

Shelley (BoE Moderator) 3 months ago

Thank you for your comment. It would be interesting to hear more on your thoughts on why you choose contactless over cash?

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Louise Davy 3 months ago

I’m pretty much cashless. I try to pay by credit card as much as possible to maximise the rewards (cashback/airline miles) I get from them to save on holiday and everyday spend. Therefore I will not be doing the challenge - way too inconvenient. Hardly any of the businesses I use only take cash - my local chippy is the only one that springs to mind and I most often go to the ATM opposite it every few months to top up my purse. I keep an emergency tenner with the cards. We have specific cards with low or no fees for use overseas but always get some currency before we go travel as back up and usually bring most of it home again. My local pub (uses iZettle) has a minimum charge of £1. Being able to use cards more on public transport is great - not long ago the local buses didn’t give change...

Shelley (BoE Moderator) 3 months ago

Thanks for sharing Louise!

MsLR 3 months ago

Prior to the challenge, the last time I handled physical cash was exchanging some foreign currencies at a bureau de change after some travels. With £350 in crisp notes, the very first thing I did was run to my high street bank and deposit it all as I was scared of losing it or it being nicked. The coins went in the nearest charity box. That was in March.

Digital payments (inclusive of contactless, online shopping, and pre-payment) are all hugely convenient for those who have the technology to benefit from it. I don't have to think about my bills, donations or hobbies after they've been set up. I shop around at the start of each 12 month contract period for the best deal and I can easily track these (and other spending) throughout the year with the many budget apps that are available. A recent charity collection in the train station actually included a digital tap donation option for those (like me!) who don't carry cash, and I saw a similar approach at the Science Museum where you could tap your £5/10 donation vs shoving a note in the collection box. Festivals and food markets which would historically accept cash-only have also been able to adopt cheaper mobile payment devices for card payments - undoubtedly more convenient for (most) consumers, and cleaner, trackable and more efficient for those vendors.

However, some individuals and smaller charities / businesses are inevitably going to be excluded from this change, either by access or inability to use the technology (the elderly, the young, the homeless). I'd love to see efficient solutions that work for all and financial education cover off budget management enabled by these technologies.

Shelley (BoE Moderator) 3 months ago

Thank you for sharing. Interesting examples, thank you for including!

Daniel Turner 3 months ago

I have to say I'm more of a cashless person I use phones,cards,smart watches on contactless the only times I use cash is when I get my hair cut to leave a tip or giving my parents there house keeping money.

Shelley (BoE Moderator) 3 months ago

Thank you for your comment - all views and feedback are welcome, this is good to know.

NN 3 months ago

Use cash for ad hoc small purchases and in cafés / pubs etc - refuse to be intimidated by card only users behind me in the queue - the delay they cause when cards are declined or the contactless is down ir PINs are forgotten are just as frustrating for the rest of the people in the queue: use direct debit/standing order/ electronic transfer via on-line or mobile banking for regular bills and outgoings: use Credit card more than debit card for large purchases to get benefut if additional cover.

Florence (BoE Moderator) 3 months ago

Dear NN, thank you for sharing your thoughts on cash only vs. cash less. It is very helpful to hear of views on the upsides and downsides of either.

Lynne Lockwood 3 months ago

I'm a CAP Money coach and having lived using cards for many years, I promote using cash for our everyday spending. I'm not talking regular household bills, but the daily and weekly expenses associated with everyday family living. There is a state of mind that changes going from cards to cash. And from overdraft living, to stitcki g to a realistic budget. I can account for my money far more accurately when I live on a cash budget, than when I put yet another purchase on a card. Since using the CAP budget system, I haven't gone into my overdraft or gone into debt, something that happened frequently before when we used cards. The value of money is so.muchl more quickly learnt when you have to literally hand it over, rather than flash the card. Our 3 teenage daughters are practising using cash and a budget. Money budgeting skills are dying out, many of the people we see on our courses haven't been taught, and for most it's a skill that is more than just common sense. Members have become debt free and families struggles have lessoned once they practiced the discipline of the CAP system and so importantly, the use of cash.

Shelley (BoE Moderator) 3 months ago

Hi Lynne, Thank you for sharing and adding to our conversation. This is really interesting to hear.

Richard Ayre 3 months ago

Will try this once I am paid again on the 23rd.. I normally pay contactless so will be interesting to see how much I actually spend, as I normally just pay contactless and don't worry until I get the statement.

Michelle (BoE Moderator) 3 months ago

Thanks for joining the challenge Richard. I look forward to reading how you get on

unsafetydancer 3 months ago

I live in a smaller community with only one reliable cash machine. Other than bus fare it's honestly just easier to go cashless. I work antisocial shifts so I often go straight from home to the bus stop to my place of work without time to visit a cashpoint. I can make sure I have a small amount of change on me to cover transport but for everything else I prefer to pay with my card. I have tried to use cash more but I will end up leaving my house 45 minutes earlier so that I have time to use an ATM due to the lack of transport and facilities in my area. I also dislike carrying more than £20 in cash with me in case it makes me a target while travelling alone.

Shelley (BoE Moderator) 3 months ago

Thank you for sharing! It would be interestign to know where in the UK you live (area not exact location!), as it is interesting to hear from others across the country.

unsafetydancer 3 months ago

I live in Angus. There is no Bank in my town so the only ATM is on the side of the supermarket.

Shelley (BoE Moderator) 3 months ago

Thank you for responding - this is good to know!

View all replies (3)

Dave Painter 3 months ago

If I take cash, it requires me to pay a premium to bank it. If I take card it requires I pay a premium to receive it. I much prefer taking cash, spending cash. Cuts out the underworked overpaid money manager who does nothing for my business. Last event I attended, other retailers using three separate card readers on three different wifi systems failed to work. The infrastructure is not there.

Shelley (BoE Moderator) 3 months ago

Thank you for sharing!

David888 3 months ago

Thought I would try to use cash today when I saw this forum, but have got into the habit of usually not carrying a wallet as it hardly seems necessary any more, thanks to ApplePay. When I do, I have a Curve card in my wallet, but I didn’t carry it today, so couldn’t get any cash out of the bank.

Shelley (BoE Moderator) 3 months ago

Thank for trying David! Let us know if you give it another go.

David888 3 months ago

Day 2: got on the Tube, paid contactless. It costs more with cash. Started searching to change my gas and electricity contracts. Called my supplier - they have no option to pay cash. Popped out for a quick pint, but forgot my wallet again so used ApplePay.

Shelley (BoE Moderator) 3 months ago

Thank you for sharing - it seems contactless/cash is the best way forward for you and where you live!

View all replies (3)

Judy Rose 3 months ago

I recently bought a £360 watch from a jewellers and paid cash. I gave the girl 8 £50 notes, she looked at them, then at me and asked me if I needed any change, when I said yes please, she asked how much change I needed!! Maybe using a card would have been better!

Michelle (BoE Moderator) 3 months ago

Thanks for commenting Judy. Please keep sharing your experiences and thoughts with us.

Ian Collier 3 months ago

Much easier to go cashless than only use cash.

Ian Collier 3 months ago

Black Cab drivers often turn down card payment but try using cash on a london bus, or with Amazon, or buying a TV Licence, or passport. Some of those are impossible, the others are just more difficult or more expensive.