Cash or card? Going all-in on one could cost restaurants

We all know the old saying — cash is king.

And while cash transactions declined following the pandemic — leading many to speculate that the UK was becoming a cashless society — research from takepayments suggests cash is making a comeback as a preferred choice of payment.

Hospitality businesses across the UK are divided on the matter. While some have chosen to remain cashless following the pandemic, others have opted for a cash-only approach.

It could be a risky approach, though. takepayments recently surveyed 2,000 UK consumers, aged 16-86, to discover how shoppers prefer to pay in 2025. The results show that picking just one side may cost businesses more than they think.

Why you shouldn’t scrap cash payments

For many restaurants, bars, and pubs, going cashless feels like a no-brainer — no tills to balance, no cash runs to the bank, and no wasted minutes counting notes and coins.

However, not everyone is on board. Many patrons have been vocal about their distaste for cashless venues. Earlier this year, major high street chains like Itsu and Zizzi came under fire from customers for not accepting cash payments.

In February, numerous MPs called for the government to implement legislation to require all businesses in the UK to accept cash. One signee was Kate Osborne, Labour MP for Jarrow and Gateshead East.

“It is a fundamental right that people should be able to use cash as a legal tender,” Osborne told The Guardian. “I understand that many people are not using cash much of the time, but there should be a choice for all.”

And it seems that sentiment is being shared, as the survey by takepayments reveals that 56% Brits still carry cash and use it in-store — up 26% since 2023, and overtaking mobile wallets as the second most popular in-store payment method.

Dodgy systems are leading to abandoned purchases

Another problem with going cashless is that technology can let you down sometimes. If you don’t choose your POS system carefully, you could be left with a glitchy setup that crashes at the worst moments.

The consequences can be dire, as research reported by Retail Tech Innovation Hub reveals that retail and hospitality firms are losing £1.6bn each year due to payment system failures, with 61% of outages occurring during peak trading hours.

takepayments also found that 45% of customers said they had abandoned an in-store purchase because the system was down. 28% also said that a technical failure made them doubt the safety of the business’s systems altogether.

John Clark, Product Manager at takepayments, advises that businesses should have “regular payment system testing” as well as a backup plan to “prevent any unexpected disruptions whilst also protecting your sales and reputation.”

Consumers want payment options

However, that isn’t to say you should abandon your POS systems and only accept cash.

Even if all systems are up and running fine, the ability to choose between paying with cash or card is simply more convenient for your customers.

While the preference for cash is becoming stronger, 52% of consumers also told takepayments that cash-only businesses are “inconvenient”. 

Additionally, among those who abandoned their purchase, the majority of respondents (34%) cited a lack of cash funds as the reason, over even a dodgy payment system.

“The new data highlights the growing importance of offering multiple payment methods to meet customers’ evolving expectations,” Clark added. “While mobile wallets and digital payment options are seeing faster and widespread adoption, traditional methods like cash and card payments are still crucial.

“Failing to provide a variety of payment options could result in lost sales, as customers may turn to other brands that offer more flexibility.”