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Abstract

This study explores the challenges posed by the United Kingdom's (UK) cashless society initiative, which has sparked a surge in digital financial services (DFS), including contactless payment and online banking. While the policy promises benefits such as convenience, security, and faster transactions, there is a concern that many, particularly financially underserved and excluded consumers, will face isolation from the cashless transition. Data from the Bank of England (BoE) reveals that approximately 1.2 million UK adults lack access to traditional bank accounts, compelling them to rely primarily on cash transactions. Using the doctrinal research method, this study examines the compelling issue of financial exclusion for unique demographics in the UK, particularly seniors, rural residents, lower income earners, the digitally excluded and individuals living with disabilities or mental health conditions. It underscores the social and digital exclusion challenges faced by these groups, as well as how their cash reliance hampers their full participation in the proposed cashless society. Drawing on comparative examples from Sweden and China, which have made significant strides in their cashless transitions, the article outlines policy considerations for methodically achieving an inclusive cashless society in the UK.

Digital Object Identifier (DOI)

https://doi.org/MXPP6343

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