A major IT outage last week that crippled Microsoft systems has reignited concerns about the dangers of relying solely on cashless transactions.
Supermarkets, banks, transportation hubs, and hospitality businesses were all impacted by the outage, leaving many scrambling as electronic payments became unavailable. The impact was particularly severe for businesses that have entirely phased out cash acceptance.
The Payment Choice Alliance (PCA), an advocacy group against a cashless society, pointed to the disruption as evidence of the fragility of such systems. “There will always be outages,” said Ron Delnevo, the PCA’s chair. “But if there’s no alternative, the whole system can collapse.”
Interestingly, data from UK Finance suggests a potential shift in consumer behavior. While the number of people using cash infrequently has been declining, it saw an uptick in 2022 for the first time in a decade.
UK Finance, representing banks, acknowledges the continuing value of cash. “It’s up to individual businesses,” they said, “but we believe in offering choice. Most businesses still accept cash.”
The GMB Union echoed similar sentiments, highlighting the crucial role of cash in everyday life. “Cash is vital for our communities,” they stated. “Removing it leaves people vulnerable when systems fail.”
This isn’t an isolated incident. Several retailers like McDonald’s and Tesco have faced payment system issues earlier this year. Notably, all of these businesses also accept cash payments.
Authorities in China and the US have already taken action against businesses refusing cash. The PCA advocates for a similar law in the UK, mandating cash acceptance by all businesses.
Beyond the practicalities, cash also offers privacy benefits, according to Martin Quinn, campaign director for the PCA. “I don’t want my spending tracked and analyzed by banks and retailers,” he said. Cash, he adds, can also be a helpful budgeting tool.
While overall cash machine usage remained steady, Link, a UK cash machine network, reported increased activity around supermarkets, suggesting a potential shift in consumer behavior in the wake of the outage.
