More than 5,000 bank and building society branches have closed over the past seven years, according to new research.
A further 206 branches are set to close by the end of 2023, according to the consumer group Which?
Rocio Concha, its director of policy and advocacy, said: “The shift to paying digitally has made life more convenient for millions, yet there remains a significant minority for whom cash is still vital as they are not ready or willing to make that switch.
“Those who rely on cash need protection from bank branch and ATM closures, with a minimum level of free access to cash guaranteed to ensure they don’t have to pay to withdraw their own money.
“But protecting access to cash is only useful if it is still widely accepted as a payment method.
“While businesses are best placed to decide whether or not to accept cash, we mustn’t sleepwalk into a situation where cash users struggle to make purchases or are excluded from certain services.”
The Government has said it will legislate to protect the future of cash.
While some shops are still “cash only”, people may find they cannot use cash at all in some other places.
ATM network Link recently found that nearly half (45%) of people have been somewhere where cash has not been accepted, or has been discouraged.
Graham Mott, director of strategy at Link, said: “Despite all the talk about the death of cash, I think it is worth reminding ourselves of how important cash is.”
Trade association UK Finance’s figures show that 1.1 million people mainly use cash when doing their day-to-day shopping.
A UK Finance spokesperson said: “The overall number of cash payments decreased by 1.7% last year and we expect cash usage to continue to fall, with cash forecast to account for 6% of all payments made in the UK by 2031.
“The banking and finance industry is committed to preserving access to cash for those who need it, including through banking hubs, free ATMs, enhanced Post Office services and cashback without purchase.”
Regarding bank branch closures, the spokesperson said: “While many customers are opting to use mobile and online banking to manage their money, the banking industry is committed to ensuring that people can do their banking face-to-face too.
"Whenever a bank branch closes, Link independently assesses the local community’s cash access needs and will commission any new services required, which can include a banking hub."
