Physical money is experiencing an unexpected resurgence in Britain, defying predictions of a cashless revolution. Recent data from Nationwide Building Society reveals cash withdrawals have increased for the third consecutive year, highlighting the enduring appeal of notes and coins among British consumers.
The UK’s largest building society reported nearly 33 million ATM withdrawals in the past year, marking a 4.6% increase from 2023 and a substantial 29% rise from 2021’s figures. Notable spikes in cash withdrawals were observed in Chiswick, West London, and Shotton, Flintshire, demonstrating the trend’s widespread nature.
This resurgence appears driven by the ongoing cost-of-living crisis, with consumers increasingly turning to physical currency as a practical budgeting tool. The phenomenon of ‘cash stuffing’ – a budgeting technique where individuals allocate physical money into categorised envelopes – has gained significant traction among those seeking to manage their finances more effectively.
The average withdrawal amount stood at £112, with peak activity recorded during the week before Christmas, when £97.9 million was withdrawn – the highest weekly figure since pre-Covid times. The surge in withdrawals by non-Nationwide customers, up 16%, reflects the impact of widespread bank branch closures on cash accessibility.
Despite many businesses adopting card-only policies during the pandemic, when cash payments plummeted by 35% in 2020, the latest figures suggest a significant shift in consumer behaviour. The trend contradicts earlier predictions of an inevitable transition to a cashless society, emphasising the resilient role of physical currency in modern British finance.
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