All the ways that UK supermarkets are now cash-free

Cash is King. Unless, that is, you’re shopping in Tesco, Morrisons, and Asda. The UK is close to becoming a cashless society, and many big grocery retailers have already taken steps to cut cash out in the past year.

Last week, Tesco announced it would be making some of its in-store cafes cash-free, in order to cut down on wait times and streamline the customer experience.

Customers have become increasingly concerned about what payment options are available at checkout. Shops can legally refuse cash, but the move is increasingly leading to pushback from consumers who prefer cash over debit cards, and fear they are being left behind.

Below, we list all the ways that major retailers are choosing cards over coins, as well as the shops that are joining the fight against creating ‘cash deserts’.

Tesco: cash-free cafes

Tesco caused uproar among shoppers this week when it confirmed it would ban cash payments at some of its cafes. The card-only policy will be rolled out to 40 in-store eateries.

The supermarket has reportedly taken the decision after a new electronic ordering system helped to significantly cut down queues. Those after a coffee or light bite will instead be required to order by a self-checkout machine.

While some self-service checkouts accept both cash and card payments, the new kiosks at Tesco cafes will not be built to accept coins or notes.

Martin Quinn, of Campaign for Cash, said it is a “mad decision”. “Many customers will be elderly or retirees who want to order in person, not press a computer screen,” he added.

Morrisons: card-only self-checkouts

Another store to automate the checkout process with self-service kiosks is Morrisons. Last November, the chain hung signs in a Surrey shop to warn customers that most of its self-scan tills would become card-only, prompting one customer to say they were “livid”.

Morrisons argued this was due to more buyers wanting to pay by card. But it is now regretful. Last week, CEO Rami Baitiéh said the supermarket went “too far” with the technology.

As well as pushing out cash payments, the retail self-service rollout has not been without teething problems. Many of these supposedly ‘unstaffed’ tills now often require a supermarket worker to be on-hand to fix unexpected problems in the bagging area.

Baitiéh has told The Telegraph that the business is “reviewing the balance between self-checkouts and manned tills” and will look to remove some from its stores.

Last month, Sainsbury’s CEO Simon Roberts was forced to defend the company’s commitment to self-service tills, despite customer backlash against the technology.

Asda: cash runs out of gas

In January, troubled supermarket chain Asda confirmed that nearly 100 of its kiosks across 25% of its petrol stations would transition to become card-only.

The rollout began in April, and has already hit multiple UK locations from Darlington to Wrexham. Motorists at affected sites will now pay “at the pump”, meaning they can pay for their fuel without having to walk inside the service station and pay at the till.

There is a method behind what might seem like money madness. According to Asda, over 90% of customers now use a card or contactless device to pay for their petrol and groceries.

14 of the chain’s petrol forecourts are already cash-free.

However, the move triggered an upset among drivers who rely on cash to pay for their fuel, with many saying they would now boycott Asda as a result.

Which retailers are embracing cash?

While many of the Big Six supermarkets move away from cash, one chain has gone the other way, by reaffirming its commitment to bank notes.

Last month, The Co-operative Group trialled its first ‘super-ATM’ multi-bank deposit service, as part of a test run being organised by the campaign group, Cash Access UK. The idea is to help disadvantaged or isolated communities avoid becoming “cash deserts”.

Next month, new laws by The Financial Conduct Authority (FCA) will also force banks to ensure that local communities can access cash services like branches and ATMs.

The steps are designed to protect cash lovers, but they could also be important for businesses. Last month’s major IT outage left many high street brands unable to take payments, providing a convincing argument for not axing cash payments.

Should businesses back cash?

In July, banking body UK Finance recorded a 66% increase in the number of people who prefer cash for everyday spending in the last year. However, it also found that 22.1 million people now identify as living “largely cashless lives”.

The debate has created a fine line for businesses to tread when it comes to the question of what payments to allow. The answer is to strike a balance between the two warring sides.

Many major supermarkets have moved away from spare change this year. Their keenness could be an opportunity for cash and card-friendly SMEs to address what is becoming an unmet customer need for the loud minority who prefer cash and coins.