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New research exploring how different payment methods influence spending behaviour has uncovered a compelling aspect of the cash versus digital debate.

The study, published in the Qualitative Market Research journal, reveals using cash not only affects consumer spending habits but also supports a deep psychological sense of ownership – something rarely experienced with digital transactions. It concludes that when we use cash, we are more emotionally involved inthe transaction - something digital payments cannot offer. 

The findings reinforce the well-documented advantages of cash such as its accessibility, resilience and data privacy. While digital payments are undoubtedly convenient, the research underscores the vital role cash continues to play in both monetary systems and society.

Cash remains the most inclusive payment method, accessible to everyone, including the elderly, unbanked individuals, and those in rural areas. With increasing bank closures, access to cash has been under threat. However, regulations introduced in September 2024 ensure continued protection and improvement of cash access for businesses and consumers alike.

Plus, as digital transactions grow, so do concerns over data privacy and fraud risks. Cash payments remain anonymous, providing consumers with peace of mind that their financial activities are not being monitored or exploited.

Mike Severs, sales and marketing director at cash handling company Volumatic, said: “With cash usage on the rise and its benefits extending beyond financial considerations to consumer well-being, businesses must adapt to customer preferences. Offering a choice between cash and digital payments is key to meeting customer needs and ensuring a resilient, stable economy.”