Analysing the annual revenue of the UK retailers with the fastest profit growth reveals a total potential recovery of £7.232 million each year as a result of refusing cash payments.
Cash usage is declining in every region around the world, with eWallets, bank transfers and credit cards becoming the most popular payment methods in 2018, new research shows.
Research has revealed that the UK has seen a significant decline in cash use, accounting for just 28% of overall transactions last year, or 7% of eCommerce purchases. This represents a 16% decrease from 2017 to 2018, and a 32% decline in cash payments since 2008.
This decline in cash has the potential to save retailers money, as till theft, counterfeit money and cash register shortages can cost organisations an average of 4% of revenue each month - with an additional 2% lost due to processing incoming non-digital payments.
The potential recovery sum increases to £108 million, or £10.8 million each, when the 2% lost due to the average float time, security, transportation and banking expenses retailers experience each year as a result of processing cash payments is taken into account.
Global Payment Trends collates official reports to reveal the potential societal and financial repercussions of digital exclusivity, whereby coins, banknotes and cheques are replaced by eWallets, cryptocurrencies and bank cards.
Potential sum to regain for biggest UK retailers
Loss prevention remains a key focus for retailers over the Christmas period, with external or internal cash theft, unbalanced cash drawers and other cash handling mistakes easily rectified by a switch to sole digital payment methods.
The number of ATMs has declined in the UK over recent years as a result of increased digital payments, with almost 1,500 cash machines closing between November 2017 and April 2018 alone - equating to a closure rate of around 300 each month.
Debit card use is on the rise, with consumers using them 13.2 billion times in 2018, up 14% compared to 2016 figures. Cash transactions have dropped by 15% in the same period. Although reduced cash use could have benefits for businesses, concerns have risen around the impact of digitalisation on marginalised groups of society.