Nearly a third of shoppers have been unable to pay in stores due to limited payment options, research has found.
A survey commissioned by the Post Office revealed that 29 per cent of people faced this issue in the past year, with 21 per cent of those unable to pay because the retailer did not accept cash.
The findings highlight concerns about an over-reliance on digital payments and the risks posed by payment system outages.
Post Office urges retailers to continue accepting cash payments
Ben Hunter Woollard, head of banking at the Post Office, said: "A payment outage can disrupt trading in seconds, resulting in customers being turned away and sales lost.
"Cash has helped many retailers continue trading during recent disruptions, but it is rarely included in formal contingency plans.
"With the Government encouraging households to keep some cash available for emergencies, retailers should also consider how they will keep serving customers if digital payments go down in emergencies.
"If cash usage is being encouraged, so should its acceptance."
The survey found that 83 per cent of businesses had a written or agreed contingency plan, but 90 per cent did not include accepting cash as a backup.
UK retailers reported an average of three payment disruptions over the past year.
The Post Office said that, to support business resilience, it has published guidance to help retailers plan for payment disruptions.
Recent trends suggest households are heeding the Government’s Be Ready campaign, which encourages people to keep cash on hand for emergencies.
Tinned tuna maker Princes revealed a surge in demand for canned food, and ATM and cash access network Link also said last week was the first time this year that the overall value of cash machine withdrawals increased annually.
Link said it is continuing to see people withdraw relatively big average amounts from ATMs, in what could be a sign of some people following Government advice to stay prepared in an emergency.
It said, based on historical trends, it is seeing more people take out an extra bit of cash when they do visit an ATM, with averages approaching £110.
Ed Woodall, chief executive of the Association of Convenience Stores, said: "Cash remains an important payment method for customers in convenience stores, with 99 per cent of convenience retailers accepting cash.
"When people lose access to other payment methods through outages or issues with networks, cash is a crucial safety net that allows businesses to continue trading and serving their communities."
The survey, conducted by Censuswide in October, included responses from 2,000 UK consumers and 500 high street retailers.
Do you think retailers should continue to accept cash payments? Let us know in the comments.
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