Bad news for fintech? Post Office reports "record-breaking" cash usage
The Post Office said it handled £3.45bn in cash in August, marking the highest total since it began recording data five years ago. However experts believe that the trend towards a cashless society will continue.
It might not be news welcome by fintech, but the Post Office has reported “record-breaking” cash usage in August this year.
While the demise of cash has long been predicted, it seems that its death might be some way off yet.
The Post Office said it handled £3.45bn in cash in August, marking the highest total since it began recording data five years ago and the first time it had topped £3.4bn in one month.
Furthermore, the Post Office said it expects the use of cash to continue to rise amid the cost of living crisis and people having less money to spend.
Some people say they find it easier and simpler to monitor spending by using notes and coins, rather than electronic payments.
It also highlighted a further reason for the uplift was the closure of bank branches with people turning to the Post Office to support them with their cash needs.
Martin Kearsley, banking director at Post Office, said: “Despite August traditionally being a quieter month for cash transactions, that’s not what we saw at our 11,500 branches.
"Millions of people are continuing to come into their local Post Office every week and rely on Postmasters and their colleagues as the only ones able to fulfil all the cash needs of their local communities and businesses with many branches open seven days a week."
The Post Office said cash transactions include personal deposits and withdrawals from post office accounts, as well as business use.
The uplift in cash use marks something of a reversal, as during Covid the use of cash dropped markedly.
While the Post Office has seen a short-term uplift in cash usage, the trend towards a cashless society is likely to continue.
UK Finance, the body representing the banking industry, says cash will account for just six per cent of payments by 2031.
The use of notes and coins has already dropped significantly over the last decade, from 55 per cent of payments in 2011 to 15 per cent.