Some are convinced the days of cash are numbered, but TGI reveals a nuanced picture.
The future of cash has come under scrutiny in recent years as card and contactless ways of paying have become increasingly widespread, simple and popular.
This has led some to question whether an entirely cashless future is inevitable. But the trends in engagement with cash are not as clear cut as many might expect.
We’ve explored our TGI data to reveal the relationship Britain’s consumers have with cash today, how this has changed in recent years and what this means for marketers.
The obvious major step change in our relationship with cash in recent years arrived with the pandemic, when avoiding direct contact with others became a priority overnight, leading many who had previously been big users of cash to abruptly switch to card and contactless payments.
ATM use has been climbing in recent years
This of course had a knock on effect for use of cashpoints/ATMs. However, what it did not represent was an ongoing decline in their use post-pandemic. TGI reveals that at the start of 2020 32% of British adults claimed to use an ATM at least once a week to get cash. A year later this had dropped to 18%. But rather than continuing to fall, it crept back up to 19% last year and up to 23% today.
When you add in consumers who use ATMs not to get cash but for other banking services, this figure is even higher, at 31% of adults (17 million people). It would appear therefore that the humble cash machine still has a prominent role to play in consumers’ lives into the future.
Cash use among the young has been growing
The consumer audiences choosing to use cash have evolved in recent years. Back before the pandemic in 2019, 47% of adults aged 65+ claimed they preferred to use cash whenever possible – far higher than the equivalent figure for 15-34 year olds of 29%.
However, in the wake of the pandemic, these roles have reversed, with many older adults embracing a cash-free existence, whilst younger consumers have increasingly gone in the other direction, as more and more of them prefer cash – perhaps as a means of keeping better track of their finances during the pressures of the cost-of-living crisis.
Cash fans especially likely to enjoy being noticed – and influencing others
By understanding the motivations of those who prefer to use cash compared to other adults, marketers can better tailor not only specific products and services to this audience, but also what messaging will best resonate.
TGI reveals that those who prefer to use cash are particularly likely compared to the average adult to like to stand out, to look good – and to spend money to achieve those ends.
But these fans of cash are also significantly more likely than the average adult to believe in the power of their own word-of-mouth, making them particularly valuable to many marketers.
TGI reveals that not only are they 20% more likely to feel it ‘very likely’ that they can convince others with their views on financial services, but also 51% more likely to believe they can convince others with views on pharmaceutical and chemist products, and 37% more likely be influential on sport.
Efficient targeting of cash users encompasses a range of media
There are a number of media which those who prefer cash are especially likely to engage, representing a particularly efficient means of reaching this audience. TGI also reveals that they are particularly likely to find advertising useful.
Anthony Parks, Area Sales VP UK, Ireland, Northern Europe at NCR Atleos – a leading ATM media owner and valued TGI client – comments ” Many commentators love to speculate on how long it will be before we see the demise of cash. Our experience across our NCR Atleos Cashzone ATM estate clearly shows that whilst there are more non-cash payment mechanisms available, cash use is steady and the move to “cashless” is not on the horizon. Consumers still see the importance of cash and value the ability to choose how they pay. Cash plays a key role across all segments, from the vulnerable and those who need to budget carefully, to the more affluent who like the flexibility and security that cash delivers. Moreover, as bank branch estates continue to contract, ATMs will become an increasingly important channel for consumers to access cash and basic banking services.”