Half of Britons say they've been encouraged to make a purchase with cash in past two months

With cash usage down drastically in the past decade – thanks largely to the rise of contactless payments – you may believe its days are numbered and physical money could vanish entirely.

However, it appears many small businesses are on a mission to keep it alive in order to dodge card processing fees and keep choice open for customers. 

More than half of shoppers (54 per cent) say they have been asked or encouraged to pay in cash in the past eight weeks, according to exclusive research for This is Money.

When asked to do so, three quarters then complete their purchase with physical money, according to the first of a new regular report by Link.

The encouragement happens mostly at small or independent businesses, the UK's biggest ATM and cash access network says, with cafés and restaurants at 22 per cent ranking highest.

This is followed by independent shops at 19 per cent, hairdressers, barbers and beauty salons at 16 per cent, outdoor markets at 12 per cent – then pubs, retail shops and supermarkets at 8 to 9 per cent.

In a hypothetical scenario, 69 per cent say they would pay with cash if asked.

Of those, 38 per cent say they would use cash if they had it on them at the time, while the remainder would always have cash on them to complete the purchase or would go to an ATM to withdraw cash.

Keeping it alive: Many small businesses are encouraging cash use to dodge card processing fees

Northern Ireland reported the highest exposure to cash encouragement and 88 per cent have completed a cash purchase as a result.

London, Yorkshire and the North West reported higher encouragement for cash than the average, while Scotland and Wales recorded completion rates of 82 per cent and 78 per cent respectively, both above the UK average.

Preference for using cash as a main payment method for Britons also rose to 15 per cent in September 2026, up from 13 per cent in March 2026.

Contactless cards remain the top choice at 39 per cent, followed by mobile payments at 31 per cent.

Separate data from Link recently found 77 per cent of small and medium-sized retailers across the UK still accept cash, with 46 per cent of in-person transactions remaining cash-based.

Among those businesses, nearly half said they actively encourage customers to pay with cash to avoid card processing fees.

They also cite improved liquidity and faster transactions as the main benefits.

The data suggests businesses are actively trying to keep cash alive on the high street, and shoppers are willing to play their part – and this may explain why there has been a rise in 'cash encouraged' signs at retailers across Britain. 

Graham Mott, director of strategy at LINK, said: 'These results show cash remains a practical choice for millions and that many small businesses are actively encouraging its use, making a resilient ATM network more important than ever.

'It's also fascinating to see when prompted, most people are happy to pay with cash and still choose it for certain retailers and services.'

The report has been created by Link due to a lack of data on the subject and comes after the Treasury Select Committee undertook a review on cash acceptance last year.

The survey was of 2,101 adults between 10-11 September 2026.

Meanwhile, as we revealed earlier in the summer, the House of Lords is currently deliberating whether Britons should be given guidance on how much physical money is required for an emergency.

Its new National Resilience Committee have begun to undertake work looking at the UK's approach to physical cash – and whether Britons need guidance on keeping an emergency stash.

Some European countries give guidance on cash reserves. The European Central Bank recommends €70-€100 per person, or 72 hours' worth of spend.

Holland says €70 plus €30 for each child, again with three days' worth of spend. 

Sweden, which was once on the cusp of going cashless, recommends a week of cash reserves.

Finland recommends 72 hours' worth of spend, Austria €100 per person, while Spain and Portugal recommend keeping a 'small amount'.

But Britain, France and Germany have no guidance on keeping physical money at hand.

Earlier in the week, our city editor Alex Brummer revealed that one senior regulator admitted to him that he is now stashing banknotes at home, so that he and his family will have enough cash should Britain's banking system be shut down.

Cash design itself has been a hot topic in recent months, with the Bank of England announcing new wildlife-themed notes that will enter circulation in the next few years.

Graham adds: 'Cash may no longer be king for most age groups, but it forms part of a healthy payment system.

'When card machines stop working, cash will always work. It's why many people take out cash as a safeguard against digital systems going down.

'However, we know that cash acceptance is becoming an issue. Our research at the beginning of the year showed that 23 per cent of high street shops don't take cash.

'For many it's easier and avoids issues such as theft or having to travel to the nearest bank branch.

'Yet, for others, the decline of cash use is problematic day to day, so much so that many independent shops are encouraging cash use by customers, when possible.

'It looks as if in most cases people are happy to help the store, pub or café and understand the reasons as to why they might prefer cash.

'Many people are aware of the challenges facing local independent businesses and therefore they want to support them as much as they can.

'Card payments eat into margins, whereas paying in cash doesn't. If there's a local cash machine or Post Office nearby, then paying in cash can be in the greater good.

'Perhaps because we now see so many signs saying card payments only, people want to be able to use cash when they can too.'

Are you a business encouraging cash use or a shopper who has been encouraged to use physical money lately? editor@thisismoney.co.uk