The benefits, dangers and impacts of a cashless society

From coffee shops to online banking, the UK is becoming increasingly cashless and digitised.

At first glance, many may see this as just a straightforward convenience. The UK’s contactless transactions were valued at £25.1 billion in 2024 and, after many retailers switched to contactless over the Covid-19 pandemic, cash is increasingly becoming less popular. Government reporting found that cash was used for 51% of all payments in 2013, but by 2023 this had fallen to just 12%.

It’s clear that many are enjoying the ease a simple “tap” of a card can have, however experts say there are drawbacks to going cashless that can impact communities all over the UK.

• Buy now, pay later? Understanding the new rules, the risks and how it all works
• Where to get free financial advice now – from benefits to budgeting
• Understanding your payslip: Making sense of deductions and contributions

Here, experts explain some of the impacts going cashless and digital-only may have on some of the most vulnerable – and how you can get help transferring to digital systems. 

What are the benefits and drawbacks of a cashless society?

Going cashless and digital can have benefits, including convenience. On the other hand, there are major drawbacks, including barriers to access when it comes to services like online banking and card payments. 

A majority of UK adults feel similarly mixed about the move to cashless, with research by LINK in 2024 finding that despite more than half of UK adults favouring digital payments (42% preferred contactless card payments, and 24% favoured digital wallets such as Apple Pay), the majority (81%) value being given the option to pay in cash. 

Nationwide also reported that cash withdrawals from ATMs is rising, finding 32.8 million withdrawals from its cash machines in 2024, a 10% increase on 2023, with the bank explaining that many are “opting to budget with physical money to avoid getting into debt”.

Elizabeth Anderson, CEO of Digital Poverty Alliance, told the Big Issue that many across the UK are impacted by digital poverty – whether that’s a lack of access to devices, not being able to afford data or broadband, or not having the digital skills to access online services – which can mean they are left behind when it comes to cashless payments and online banking.

“One of the particular challenges we see is that bank branches are closing at a rate of knots, and this therefore means you’ve got people who have always very happily gone into the branch, and then overnight that branch closes, and the request from the bank is that you start doing that online,” she explained. “That’s an overnight problem people have. It’s not something people can build up their confidence towards.”

Anderson said there can be benefits to managing money online, explaining: “If you’ve got the access, and you’ve got the skills, and you’re confident you know how to stay safe online, then you can manage your money much more regularly… You can do far more in terms of budgeting, because you’ve got that immediate access to exactly what’s happening in your bank account.”

“But there is this growing minority of people who are being pushed further and further to the one side of the digital divide, and they’re constantly seeing services they could access face-to-face or by phone taken away. And they’re not able to keep up with that,” she explained. 

Martin Quinn, campaign director for Campaign for Cash, told the Big Issue that there are numerous benefits to cash payments, and while the group is “not anti-cards”, it wants to highlight that cash should “remain as a payment choice for everybody”. 

Cash, Quinn explained, is important “for a few reasons”, including privacy, learning financial literacy, and the ability to pay for items if banking systems or the internet were to experience an outage or a cyber attack. 

“If you pay for everything with a card, not only is every single transaction tracked, but actually your data is being stored and potentially being sold on,” he explained. “The beauty of cash transactions, if you take £50 out of the ATM, you can spend that anywhere you like… privacy is really important.”

He added that for young people, dealing with cash is “really important for financial literacy… if you hand over cash, you physically realise you’re losing it.”

Who is most impacted by going cashless?

With public interest company LINK finding in December that half of UK adults (50%) have had issues paying with cash in the past year, experts explain that older people, people with limited access to technology – whether that’s due to digital poverty or a lack of technological literacy – and those in abusive relationships could be impacted the most by society moving to cashless models. 

Quinn explained: “In my view, two main groups will be left behind [by going cashless]. You’re going to get older people who prefer to use cash, they’ll be left behind because they’re not used to having smartphones.

“Also, you’re going to get vulnerable groups, people who are on the margins of society, that don’t have an awful lot of money. Maybe they’re unbanked, or they don’t have credit and debit cards… if we lose cash in its entirety, swathes of people will be left behind.”

Anderson agreed that older people “who’ve been used to doing things in a certain way for decades” are particularly impacted by services going online-only and cash-free. 

“As we get older, our digital skills do start to drop off, even if we’ve been really confident online in middle age… That confidence declines and the ability to keep up with new tech declines, even if the interest is there,” she explained, adding that Digital Poverty Alliance particularly sees that “families with younger children who are on a low income will struggle to keep up with accessing the technology”. 

Sara D’Arcy, head of advocacy and communications at Surviving Economic Abuse underlined that digital payments can be exploited by abusive partners, and that cash can be a “lifeline” for survivors, explaining many “secretly build up cash to help get to a place of safety when they flee”. 

“Nearly one million UK women were prevented from leaving a dangerous partner because of economic abuse in the last 12 months. Abusers restrict victim-survivors’ access to money and independent bank accounts and exploit their access to victim-survivors’ accounts to track their spending and location,” D’Arcy said. 

She added that the government must protect survivors by “ensuring that parts of the economy must always accept cash, especially the businesses and public services victim-survivors rely on to flee an abuser”. 

What are the impacts of banking moving online?

Alongside society shifting to cashless payments, banking itself is increasingly going digital. Some, however, struggle with the transition to online banking, or are unable to access it altogether. 

Going digital-only can prove inaccessible for certain people, as the Digital Poverty Alliance notes that 53% of people offline can’t afford the average monthly broadband bill. In addition, more than a quarter of young people (26%) don’t have access to a laptop or similar device. 

Anderson explained that while online banking may be beneficial for those who are confident with technology, there are many barriers that could affect a person’s ability to access digital banking services, including whether they have access to hardware like a laptop, as filling in “long, complicated forms on a little tiny [smartphone] screen” can be “very difficult”. 

“People are struggling more than ever to keep up with the rising costs of broadband; we are regularly hearing from families who have had to switch off their broadband access because they can’t afford that anymore,” she continued. 

Alongside the “skills” to access online banking systems, there is also the “accessibility” of the services to consider, Anderson explained.

“Banking is a really great example of this, you’ll have some banks that have created really simple interfaces that if you are less confident online, with a bit of help, you can probably reasonably easily navigate. And then you have other banks… The websites and their services are awful, so you’ve got to have a lot of intuition around how you use a digital service,” she said. 

“That’s quite a lot of things that can really make this challenging for people.”

Can I get help transferring to digital?

If you’re not used to accessing banking or other systems – such as universal credit or PIP – online, experts say there is help out there to ensure you can make the transition to digital systems. 

Halide Kalfaoglu, benefits expert at Turn2us, told the Big Issue: “If you’re not confident with technology, free support is available. Local councils, libraries, and community centres often help with online forms. 

“Charities like Age UK and Citizens Advice offer in-person or phone support, digital skills sessions, and can sometimes complete applications for you. Use the Turn2us Find an Adviser tool to get help near you.”

If you’re not comfortable banking online, banking hubs may be a convenient way to access banking services in person, and the government is committing to rolling out “350 hubs by the end of this parliament” for those who have lost local bank branches. You can find your local hub via Cash Access UK.

If you’re struggling to afford broadband, social tariffs are available if you meet certain criteria. For those on universal credit, pension credit, or certain other benefits, social tariffs may be a more affordable way to access broadband and phone packages.

If you’re not comfortable accessing the benefits system online, or you don’t have access to the resources you need to do so, Kalfaoglu explained: “In some cases, benefits can be applied for by phone or post. It’s also worth checking if the specific benefits office (like the DWP or Social Security Scotland) offers this, as government departments should provide accessible versions of all benefits applications.”

For those who are completely inexperienced with digital, your local library may offer courses on how to learn to use the internet and computer basics, while the Learn My Way resources from the Good Things Foundation have plenty of free classes on the basics of using the internet and accessing email.

Digital Poverty Alliance added that it “encourages anyone struggling to access online services to visit our website, where they can find useful resources and information on where to get help locally.”

Do you have a story to tell or opinions to share about this? Get in touch and tell us more. Big Issue exists to give homeless and marginalised people the opportunity to earn an income. To support our work buy a copy of the magazine or get the app from the App Store or Google Play.