Almost seven out of ten people feel it is important to have cash in their wallets, pockets and purses, according to new, independent research commissioned by NoteMachine, the UK's largest independent operator of cash machines.
People are choosing cash over cards especially for buying everyday items and for a night out – with one in eight of us still using cash for the main weekly food shop. And in these tough economic times one in five respondents believes it is easier to manage their money if they withdraw it in notes from a cash dispenser.
While the survey pinpointed high street banks as the most popular location for a cash machine, convenience stores now account for 16 per cent of transactions carried out this way. Those aged between 25 and 34 are most likely to use cash machines in such locations (18.5%) and this same age group is also most likely to visit a cash dispenser over the weekend.
This research backs up what retailers are saying about the benefits of having cash machines on their premises. Convenience store operator John Perrett reckons that at least £1 of every £10 withdrawn comes straight back into his tills. The NoteMachine customer runs 13 Spar shops on the Isle of Wight through his Hunnyhill Stores Group and each has a cash machine.
"Having a cash machine at the store certainly increases footfall and the chance of those customers spending in our shop," said John. "On average about £1 in every ten comes back into our shops so having a cash machine also has a positive impact on our sales and any additional running costs are wiped out by the extra income we gain."
And the 29-strong Preston-based Spar operator Lawrence Hunt & Co has seen significant increases in transactions with its suite of NoteMachine installations. Finance director Francis Chaney said: "We have also seen quickly growing, significant transaction levels where completely new installations have taken place."
Peter McNamara, Executive Director of NoteMachine, said: "However much we might like to think we are moving towards a cashless society, this survey shows the opposite. This survey bears out our reliance on - and love for - having cash to hand.
"Whereas at one time the cash machine only existed on the wall of the bank branch, they are now much more common, from corner shops to pubs and clubs. The numbers of machines is growing rapidly, too, giving even more choice to consumers.
"That's good news for the customer who has many more options on where to withdraw their money and it's good for the people who run smaller shops. If people obtain cash from there, the chances are that they will use that cash to buy goods from the shop."
Independent research company OnePoll was commissioned by NoteMachine to contact 3,000 credit and debit card holders across the whole of the United Kingdom in one of the most extensive pieces of research conducted in this area.
Among the other highlights are:
• A generational difference with progressively more people preferring to carry cash as they get older
• No widespread move towards contactless technology replacing money for smaller items
• There is no set day for taking out cash – more than half the respondents simply withdraw money as and when they need it
• Men are slightly more likely to carry cash than women
• There are some marked regional differences. In the South-East of England, 76 per cent of people think having cash at hand is important, while in the North-West the figure is just 62 per cent.
Participants were also given the chance to express opinions on why they carried cash. Convenience, particularly for small purchases and the ability to pay in places that did not accept cards topped the list. That included car parks and bus companies as well as charity collection tins.
There was also a worry that conventional card technology might let people down by not working at a time when they needed it.
