From car parks to charity donations: Top 10 scenarios where Brits need cash despite digital shift

A poll of 2,000 adults revealed that despite concerns about Britain transitioning to a cashless society, 55% always or frequently carry cash when out and about, with a quarter using cash two or three times a week. Among those who ever carry cash, 46% typically have between £11 and £30 on them.

People also prefer to have cash on hand for situations such as paying for goods at a market (30%), buying ice cream from a van (27%), and spending at a local fete (25%). Brits' generosity also plays a role, as they often carry cash to donate to charity (35%) or give to a homeless person (22%).

The research, commissioned by the Post Office, also disclosed that 16% still keep a stash of coins in the car and 12% even have a reserve of notes in their bedside drawer - just in case. It comes after Royal Mail made a major delivery rule change from this week for millions of UK homes.

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The possibility of technology failing is a significant reason why many like to have some cash on them – with 38% of those who carry cash doing so in case their card doesn't work, and 12% because they worry about their phone breaking or running out of battery.

Meanwhile, 15% believe that using cash instead of bank cards or mobile phones helps them better monitor their spending. However, despite ongoing dependence on cash, 41% regularly find themselves caught short without any money on them.

Meanwhile, 24% have experienced embarrassment when unable to tip someone due to being cashless, and 20% have found themselves stranded at cash-only car parks.

Many have also been left unable to use gym lockers (9%), vending machines (14%) or fairground attractions at community events or local fêtes (10%) because of empty wallets or purses.

Ross Borkett, banking director at Post Office, which provides free cash withdrawals, commented: "This research highlights that despite us living in a world driven by technology, there is still a need for physical cash.

"There are many scenarios where cash is still king, whether that's tipping a waiter, donating to someone on the street, or buying something at a car boot sale or school fete.

"The fact is that we are not yet a cashless society, and cash is used a lot more than people think. Pounds and pennies are used in so many instances, every single day."

Many respondents surveyed through OnePoll recognise that using cash helps Britain's economy – with 46% of those more inclined to pay cash at independent retailers (44%) doing so to back local enterprises.

Additionally, 56% stated it's crucial to have cash available when required. On the high street, more than half of shoppers favour cash over card in newsagents (58%), charity shops (57%) and convenience stores (54%).

Meanwhile, others prefer to back local enterprises by using cash at the bakery (52%), greengrocers (38%) and hairdressers or barbers (37%).

Dr Christian Bach, associate professor in Economics at the University of Reading, explained: "When consumers pay with cash, they physically hand over something they own. This act creates what behavioural economists call the 'pain of paying' – activating the brain's pain centres and curbing impulse spending. By contrast, digital payments lack sensory depth and leave no physical trace.

"As a result, the natural restraint on spending is weakened, and indeed, studies show that people spend more – and more recklessly – when using digital payments.

"Cash also fuels local economic growth, as spending cash locally keeps money circulating in the community, boosting nearby businesses and jobs. Small firms, independent shops, and vendors often rely on cash for its immediacy, simplicity, and inclusiveness.

"As Post Office's data shows, cash continues to play a vital role in the UK economy and remains essential to the health of small businesses. While digital payments can offer convenience, cash is capable of strengthening local economies, supporting financial wellbeing, and encouraging more mindful spending."

TOP 30 PLACES BRITS LIKE CASH TO HAND

Leaving a tip.

A quid for the shopping trolley.

Donating to a charity collection box.

Paying for items costing less than £5.

Purchasing goods at a market.

Paying for parking in a car park.

Buying an ice cream from an ice cream van.

Purchasing goods at a local fete.

Buying items at a car boot sale.

Giving money to a homeless person.

Gifting cash for someone's birthday.

Using a vending machine.

Buying goods at independent shops.

Paying for a taxi ride.

A pound coin for the locker at a gym/leisure centre.

Buying a newspaper.

Using machines in an arcade.

Buying items at a school fair.

Purchasing food from a food truck.

Paying for public transport.

Paying a tradesperson.

Shopping on my local high street.

Tipping buskers/performers.

Treating myself (e.g. a chocolate bar without feeling like I'm spending).

Paying for a car wash.

Buying a pint at a pub.

Paying for a takeaway coffee.

Paying for rides/games at a local funfair (e.g. a pop-up fair in the summer).

Giving my children pocket money.

Settling a debt with a mate.