We’re living in a digital age. With social media, we can chat to our loved ones and share updates about ourselves online. With video calling, we can have meetings with people from across the world. With online shopping, we don’t even have to step foot outside to buy the things we need. 

For many people, this shift to digital is a fantastic time-saver. The entire world is at the tip of our fingers, saving people from going to the supermarket when they can order groceries online and from going to the bank to cash a cheque when they can just scan it with their phones. 

But for all the benefits of the digital shift, there are many downsides. One you might not think about is paying with a bank card versus cash. 

For tech savvy younger generations, online banking is a piece of cake. However, for their older relatives, not only is in person banking familiar to them and part of their routine, it’s much less confusing than its online counterpart. An AgeUK study found that “only 14% of the 85+ age group bank online”, and a study in Wales found that “31% of over 75s do not have access to the internet at home.”

It’s common for older people to rely on younger relatives to help them set up, use and understand technology, including online banking, but what happens to those people who live on their own and don’t have anyone to help them? Because so much of the UK has turned to online banking and away from cash, banks have mostly disappeared from our high street, which is a major concern for these vulnerable groups. 

There are so many other groups of people who are worse off because of the shift towards a cashless society. Donations to the homeless have declined year on year since 2021, reaching a new low in 2023. More than a quarter of respondents to this survey said that they “never or rarely carry cash”, which will undoubtedly affect the average person’s ability to donate to the homeless. In addition, charities will inevitably receive less in fundraising collection buckets with this move to a cashless society.

Another factor, which affects us over at The Community Give Box is card fees. Shops incur card fees when accepting card payments, which makes it difficult for charity shops who are selling items at such a low cost to begin with. Because of our society’s reliance on card payments, some people use their card for transactions as low as 50p. Once card fees have been deducted, it renders the sale worthless for the charity. Cash payments are free, which means more money that can go to vital resources and support for the community. By this same token, small independent businesses are worse off because of the reliance on card payments, which means that many can’t afford to stay on the high street.

A cashless society also has a negative effect on the hospitality industry. Many restaurant and cafe workers rely on tips from customers after a gruelling shift. In the same vein, many musicians find a way to earn money from their skills by busking, however, 

A cashless society also undercuts tips for hospitality workers and buskers. Cash tips often provide a crucial supplement to wages, which are frequently lower than average. The shift to cashless payments can lead to reduced tipping, as many customers forget to add tips to their digital transactions. Similarly, for buskers and street performers, cash has long been the lifeblood of their trade, with passersby readily tossing coins into an open case or hat. Without cash, spontaneous generosity becomes less likely, and performers face the added burden of investing in digital payment options, such as QR codes or card readers, which may not be practical or accessible for everyone.

Cash is important for children’s learning and development. Many children learn to count using coins, which improves their maths skills. Pocket money also plays a vital role in teaching children the value of money and how to manage it responsibly. When children have physical money, they gain a tangible understanding of its worth, learning to budget, save, and make spending decisions in a safe, low-risk way. In a cashless society, however, this invaluable learning opportunity is diminished, as digital transactions lack the same tactile and visual reinforcement. Swiping a card or tapping a phone often feels abstract, making it harder for children to connect spending with the finite nature of money.

When surveyed, many people oppose a cashless society – “70 percent of Gen Z are against a cashless society, with almost 80 percent of Baby Boomers in agreement.” There are a multitude of reasons, but the benefits of cash far outweigh the cons. Whilst the digital revolution has been nearing for the past twenty years, the pandemic seemed like it was going to be the final nail in the coffin for cash. 

Have you thought about the impact of how you pay? It might be more convenient for you to use card, but that convenience often comes at the cost of others. If you oppose a cashless society, make sure you are the change you want to see. Make that extra little effort to use cash, even if it takes a few more minutes to draw it from the machine. You might find that you can budget better and realise the value of your purchases rather than just mindless tapping a bank card.