A cashless society might sound convenient — no more carrying loose change, no more worrying about lost banknotes — but is it really as great as it seems?
While card payments and digital wallets have made spending easier, going completely cash-free comes with its own set of problems (especially when a bank’s entire system goes down for days, leaving you without access to your money — looking at you, Barclay’s!). From privacy concerns to the impact on vulnerable groups, there are plenty of reasons why ditching cash might not be the best move for everyone. Here’s why we might want to keep hold of physical currency for a bit longer.
1. It makes life harder for older generations.
Not everyone grew up with contactless payments and banking apps. Many older people are used to dealing with physical money and might struggle to adapt to an entirely digital system. While some manage just fine, others find it overwhelming and confusing. For those who don’t use smartphones or online banking, a cashless society could mean losing independence when it comes to handling their own money. Being forced to rely on cards or apps might leave them feeling excluded or even vulnerable to fraud if they don’t fully understand how the systems work.
2. Some businesses still rely on cash.
While most shops and restaurants now accept cards, plenty of smaller businesses still prefer cash (and no, not because they’re trying to pull a fast one on HMRC). Market stalls, independent cafés, and tradespeople often find it easier to deal with physical money, especially since card transaction fees can eat into their profits. Forcing every business to go digital could put extra pressure on small traders who aren’t set up for cashless payments. Not everyone wants or needs a card machine, and for some, handling cash is just simpler.
3. Cash is still king in emergencies.
What happens if there’s a power cut, a system crash, or an issue with your bank? If all your money is digital, you could be stuck with no way to pay for essentials — a position many people found themselves in when Barclay’s had a major tech issue recently that lasted two days. Card machines and online banking aren’t much help when there’s no internet or power. Having cash on hand means you’re always prepared, no matter what. When card payments fail, whether it’s a temporary glitch or a widespread outage, cash is often the only thing that still works.
4. Not everyone has access to banking.
It’s easy to assume that everyone has a bank account, but that’s not the case. Many people, especially those on lower incomes or without a fixed address, rely on cash because they don’t have access to banking services. A cashless society could make things even harder for people who are already struggling. Without a way to access digital money, they’d be locked out of basic transactions—something that could create even more financial inequality.
5. Digital payments make tracking your spending harder.
When you pay with cash, it’s easy to see exactly how much you’ve spent — you hand over physical money, and you know what’s left in your wallet. With digital payments, it’s much easier to lose track. Contactless cards and mobile payments make spending feel effortless, which isn’t always a good thing. It’s easy to tap your card without really thinking about it, only to check your bank balance later and wonder where all your money went.
6. Cash doesn’t come with hidden fees.
When you withdraw cash, that’s it — it’s yours to spend with no extra charges. But with digital payments, there can be all sorts of hidden fees. Some banks charge for certain transactions, and businesses often have to pay fees for processing card payments. These costs might seem small, but they add up over time. In a fully cashless world, everyone would be at the mercy of banks and payment providers, who could raise fees whenever they want.
7. Digital payments make it easier to overspend.
There’s a reason people used to use cash-stuffing methods to control their budgets; when you physically see your money disappearing, you’re more mindful of spending. With cashless payments, it’s easy to spend without realising. Using cards or mobile payments removes that psychological barrier. You don’t feel the money leaving your hands, so it’s easier to justify unnecessary purchases. Before you know it, you’ve spent more than you planned, and your budget is out the window.
8. Cash offers privacy that digital payments don’t.
Every time you tap your card or use an app, a digital record is created. Your spending habits are tracked, stored, and sometimes even sold to advertisers. If everything is cashless, there’s no longer any financial privacy. With cash, no one knows what you’ve spent or where you’ve spent it. But with digital payments, banks, tech companies, and even the government can track your every purchase. In a world where personal data is already being collected everywhere, losing the privacy of cash is a big deal.
9. The risk of fraud increases.
While cash can be lost or stolen, digital fraud is an even bigger issue. Card details can be hacked, accounts can be drained, and identity theft is a real threat. The more people rely on digital payments, the more opportunities criminals have to take advantage. A fully cashless society would mean that all money exists online in some form, making it a prime target for cybercriminals. Losing cash from your wallet is bad, but having your entire bank account wiped out is far worse.
10. It creates financial dependence on banks and tech companies.
Right now, if you have cash, you’re in control of your money. But in a cashless society, all financial power lies with banks and tech companies. If your account is frozen, hacked, or restricted for any reason, you’re completely cut off from your own money. It also means banks could introduce new charges, limit withdrawals, or even restrict certain types of spending. With no cash as an alternative, everyone would be forced to play by their rules.
11. It can exclude homeless people and those in crisis.
Source: Pexels Many people who rely on cash, such as the homeless or those fleeing difficult situations, don’t have access to banking. In a fully cashless world, they’d be even more isolated, unable to buy basic necessities or accept small acts of kindness from others. Cash donations often make a huge difference for people in need. If everything moves to digital, those who don’t have access to banking would be completely shut out, making life even harder for them.
12. It reduces freedom of choice.
Right now, you can choose how to manage your money — cash, card, mobile payments, or a mix of all three. In a cashless society, that choice disappears, and you’re forced to rely on digital systems whether you like it or not. Not everyone wants to go fully digital, and not everyone trusts the banking system enough to put all their money in it. Removing cash as an option takes away personal choice and forces everyone into the same system, whether it suits them or not.
13. If something goes wrong, you’re completely stuck.
Cash is simple — you hand it over, and the transaction is done. Digital payments, on the other hand, can fail for all sorts of reasons. Maybe your bank has an outage, your card is declined for no reason, or your payment app suddenly stops working. When that happens, there’s often nothing you can do except wait for the issue to be fixed. If cash was still widely accepted, you’d have a backup. But in a cashless world, a simple glitch could leave you unable to buy even the basics.
