As of 2022, only 5% of businesses in the UK only accept cash, according to data published in a new white paper: Less Cash, More Possibility. The research indicates that the primary driver is a proliferation in mobile payments. Already 48% of businesses have adopted digital payment methods, with female-owned businesses taking the lead, at a 51% adoption rate, relative to 42% for male-owned businesses.
This is largely driven by today’s digital-first society, where mobile devices have become a one-stop-shop for consumers, particularly post-COVID-19, when national lockdowns forced people to spend more time inside their homes, YouLend reveals. In fact, more than six out of 10 people in the UK used Apple Pay for point-of-sale transactions in 2021, more than any other country in the world.
Company officials stated that what they hear from their over 40,000 customers across the UK is that accepting card and digital wallet payments as part of their payment mix gives them unique benefits, including speed, security, and reconciliation, giving them time back to run their business. To lean into the shift shown in this research, business owners should be thinking about providing the right mix of payments based on their customers’ needs.
The research further revealed that good cash flow is important for the health of any business, especially in a challenging economic climate. And businesses, regardless of payment method acceptance, cite improving cash flow as critical. With 42% of businesses stating that card acceptance improves their cash flow, and 69% stating that next day payments help with cash flow and business management, shows that cashless payments is enabling businesses to take back control of their cash flow.
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