Ten Facts About Cash

Ten Facts About Cash

Cash has been in steady decline in recent years as many people have turned to different ways of paying. Back in 2006, cash accounted for 62% of payments but it’s predicted that by 2031 this will be down to just 6%.

Data published on 12 January 2024 by LINK, the UK’s cash access and ATM network, revealed that consumers withdrew £81 billion from ATMs in 2023. The figures showed a slight decrease in the overall yearly total of cash withdrawn compared to 2022, when UK banking customers withdrew £83 billion from cash machines.

But that’s still billions of payments, and the people who rely on cash are often some of the most vulnerable people in society.

Graham Mott, Director of Strategy, LINK, said: “Overall, cash and ATM use has been slowly declining over the past year. While we saw a steep fall in withdrawals during the pandemic, typically around £1.5bn is still withdrawn from cash machines every week. We know that more people are shopping online and paying for things using their debit card or phone, however, cash remains popular and our research shows its importance when helping people across all age groups to budget“

In the UK most cash is acquired via the LINK Cash Access and ATM Network, this network connects virtually all the UK’s ATMs and provides communities with access to cash through services such as cash at retailers’ tills and Banking Hubs.

Whether you are cashless, an avid user of cash or somewhere in between here’s ten facts that you need to know.

1 ) ATM transactions currently just below recent years’ but back in 2020 they were about to collapse as we went into the first lockdown.

During the Summer daily LINK ATM transaction volumes were consistently less than recent years’ and cool wet weather probably did not help overall activity.

Better weather at the end of August and the beginning of September had narrowed the gap but since then – apart from a boost in October from cost of living payments – volumes have continued their trajectory below the previous two years’.

ATM Volumes have tracked closer to previous years’ in recent weeks but some of this will be down to the weather in previous years. Friday 18th February 2022 saw Storm Eunice with 122mph winds and last year Storm Otto also hit ATM use.

ATM transactions are currently just below recent years’ in the graph below but back in 2020 they were about to collapse as we went into the first lockdown.

Source: LINK

2) The value of cash withdrawn retains its resilience particularly when boosted by the receipt of cost of living payments.

With more withdrawn at each visit, whilst the number of ATM visits has been declining, the value withdrawn overall has been more resilient. Both the volume and value of withdrawals were also given a temporary boost in early February when the cost of living payments were received. The jump in the value withdrawn can clearly be seen in the graph below on 6 and 7 February.

The graph also shows a further boost in the value withdrawn around Valentine’s Day – possibly prompted by additional spending but maybe simply as a result of a further tranche of £299 cost of living payments received into accounts.

Source: LINK

3) From the latest LINK research 23% still withdrawing cash regularly in case it is needed.

A summary of all responses is shown below:

Source: LINK

LINK does regular research on how consumers are using ATMs and cash and also recently asked How much cash do you carry? and compared this to the same question five years ago.

As might be expected, the biggest change is percentage of people who never carry cash, which has jumped from just 4% of people in 2019 to 15% although perhaps still less than might be expected. The number of people who carry very low values, £10 or less, has barely changed, as have carrying much higher values, ie more than £50. However more than £10 but less than £50 have all shown reductions.

Source: LINK

4) The volume of ATM transactions has decreased by 39% (pre-COVID) for the week ending 25 February.

For the week ending 25 February, the volume of ATM Transactions decreased by 39% when compared to the final week before the first COVID lockdown.

5) The volume of ATM transactions has decreased by 10% when compared to the equivalent week in 2023.

For the week ending 25 February:

  • The volume of ATM transactions decreased by 2% when compared to the previous week.
  • The volume of ATM transactions decreased by 9% when compared to the equivalent week in 2023.
  • The volume of ATM transactions decreased by 14% when compared to the equivalent week in 2022.

The graph below shows what has been happening to ATM transactions since 2019:

Source: LINK

6) In the week ending 25 February there were 26 million ATM transactions.

The pattern has been very similar to recent years’ with volumes tracking at a lower level than previous years and values closer as people now take out more on each visit.

This remained the case at the end of February with a boost in the very last week of the month but remaining below previous years’

Source: LINK

The following chart shows how weekly ATM transactions have fluctuated since 2020 – with the current pattern and month end boost clearly seen.

The £299 cost of living payments received in early February had an immediate impact on ATM use. This probably meant an extra £116m of cash in consumers’ pockets and an extra 2 million ATM Transactions.

Source: LINK

7) The Volume of ATM Transactions in February 2024 down on last year by 2.6% (the extra day in 2024 providing a boost!)

The second half of 2023 had been pretty consistent overall which means for the year as a whole volumes were down 6% on 2022 and 42% on pre-pandemic 2019.

January 2024 saw ATM transaction volumes fall by 7.9% compared to January 2023, while February’s fell by just 2.4% (boosted by the extra day)

Source: LINK

Source: LINK

Almost £6bn was dispensed from LINK ATMs in January, 1.9% down on 2023, while February’s £6.3bn was up by 4.3%. The value withdrawn in February 2024 was boosted by the extra leap year day and the £299 Cost of Living Payments received during the month.

Source: LINK

Source: LINK

The difference between how volumes and values are changing is because the average withdrawal value continues to rise and now stands at £85.31.

This is a very well-established pattern and probably reflects changes in consumers’ shopping, work and travel habits and perhaps a willingness to take out a larger sum, expecting it to last them some time, rather than regular lower values which they only expect to last them one or two days.

Source: LINK

10) On average UK adults made 15 trips to the ATM and withdrew a total of £1,484 during 2023.

In LINK’s Annual Report published on 17 October the Chief Executive John Howells said:
‘Cash is still a vital means of payment for millions of consumers, and LINK’s own research shows that over 70% have used cash in the previous two weeks. Consumers value cash for its speed, simplicity, reliability and convenience and even privacy. Many won’t leave home without it, or still make sure they keep a stash at home, even if it’s “just for emergencies”. Despite more and more consumers moving to digital payments, cash remains useful for most people and is still vital for a significant minority’.

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