• More than two-thirds of over 55-year-olds are uncomfortable with the idea of a cashless society
• 83% use cash less than five years ago, with 62% stating that their use had fallen significantly
• Four in 10 last visited a bank branch over six months ago

More than two-thirds of over 55-year-olds are uncomfortable with the idea of a cashless society, despite over 80% admitting to using cash less frequently than five years ago, Paragon Bank research has found.

Paragon’s survey of 2,700 savers found that 83% use cash less than five years ago, with 62% stating that their use had fallen significantly.

Despite this, 37% said they felt very uncomfortable about the notion of a cashless society, with 33% slightly uncomfortable. Older savers are less comfortable – three-quarters of those aged 85+ were unhappy to see cash go, compared to 69% of those aged between 55 and 64.

At the opposite end of the scale, 15% said they were happy to see the back of physical cash.

Carrying cash

Over a quarter (29%) said that they never or rarely carry cash, with 21% only taking money out when they need it. Nearly half (49%) said that they always make sure they have some cash on them at all times.

Those in Northern Ireland (59%), Yorkshire & Humber (56%), East England (54%) and the North West (53%) were more likely to carry cash at all times, with people in Wales and North East (45%), the West Midlands and South West (47%) least likely to always have money on them.

When shopping for goods or services in person, only 6% said they predominantly paid in cash, with 81% opting for a debit or credit card. Meanwhile, 11% said they made a digital payment through their phone or smartwatch.

The most common reason given for reduced cash usage was the convenience of card or digital payments (76%), but security (18%), bank branch closures (18%) and the reduction of cash machines (14%) were also cited as reasons.

Bank branch usage

The research also showed how bank branch usage has changed. An overwhelming 84% of respondents preferred to bank online, with 35% using a branch. One in five (19%) mainly bank using a mobile app, with 6% using telephone banking and 4% still using post.

Regular branch usage is also limited with this demographic. Whilst a third (37%) had visited a bank branch in the past month, a quarter said they had visited a branch in the past six months, and one in five (19%) last visited a branch over a year ago. A further 9% said they could not remember the last time they visited a branch.

Derek Sprawling, Paragon Bank Director of Savings, said: “The way we pay for goods and services has changed rapidly over the past five years, with the migration from cash to card payments, and now through to digital transactions via our phones and smartwatches.

“There is a perception that it is the younger generation who are driving this change, but our research shows that over 55s are comfortable transitioning to non-cash payments. However, despite the reduced use of physical money, the majority of this group don’t like the idea of a cashless society and seem to still value the tangible aspect of money.”

For further information contact:

Michael Clarke
Head of Media Relations
Paragon Bank
07740090746

Notes to editors:

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £14 billion of assets under management, helping more than 340,000 customers to achieve their ambitions.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551.