We recently put out a flash survey asking Cultural Enterprises members if their organisations were going cashless. With 102 responses gathered, the results provide an intriguing snapshot of attitudes within the cultural sector to a question faced by all businesses:
- 37.3% said they would never go cashless.
- 22.5% said they are not cashless yet but would consider it.
- 7.8% are actively considering going cashless.
- 32.4% have already adopted cashless transactions.
This means that nearly one third of cultural organisations have already made the leap, and many others are open to the idea. We’ll explore why a significant minority are never considering going cashless below. While the results don’t encompass the entire cultural sector, they offer valuable insights into this growing trend.
Why Are Organisations Going Cashless?
The UK’s shift towards a cashless society is well underway. According to UK Finance debit cards were used for over half of all payments for the first time in 2022, while retail spending on cards peaked at 90% just after the COVID19 pandemic. The same report showed that approximately one third of British consumers now regularly use mobile contactless payment. The British Retail Consortium had recently reported a resurgence in cash, rising back up to 19% of retail payments in 2023, but the trend is clear . This has been driven by factors such as convenience, technological advancements, and a growing consumer preference for digital payments. For many cultural organisations, going cashless aligns with broader societal trends and can provide a range of benefits, including:
1. Efficiency and Speed
Cash transactions can be time-consuming for both staff and customers. Handling change, reconciling tills, and transporting cash to banks all require time and resources. By going cashless, cultural organisations can streamline operations. Digital payments are typically quicker to process, enabling faster transaction times at busy points like ticket counters, contactless donations, and gift shops. This can be particularly beneficial during peak periods.
2. Improved Financial Security
Cashless systems reduce the risks associated with handling physical money, such as theft, loss, or mismanagement. Digital transactions are securely tracked, making financial reporting and oversight easier and more transparent.
3. Enhanced Visitor Experience
A smooth, frictionless payment process can improve the overall visitor experience. Cultural venues are competing against sophisticated digital experiences and subscription services, with consumers increasingly used to using contactless payments or mobile wallets like Apple Pay or Google Pay for convenience. Cultural organisations that adapt to this preference may see higher visitor satisfaction and even increased spending, as studies show consumers tend to spend more with cards than with cash.
The Case for Keeping Cash
Despite the benefits, there are significant reasons why many cultural organisations are hesitant—or even adamantly opposed—to going entirely cashless. In fact, over 37% of respondents in our survey stated they would never go cashless. This reluctance is often driven by concerns about inclusivity and accessibility.
1. Inclusion and Accessibility
The most frequently cited argument against going cashless is its potential to exclude vulnerable groups, particularly the elderly, low-income individuals, and those without access to banking services. Research done by the Royal Society of Arts found 10 million people in the UK rely on cash for their day-to-day transactions . For cultural venues, which often aim to be inclusive spaces for people of all backgrounds, going cashless could be seen as a barrier to participation.
International tourists may also be a consideration. Visitors with foreign currency may expect to be able to spend at a museum café or theatre bar, and avoid expensive bank fees to using their cards abroad.
Finally, not all venues have cashless donations boxes, and not all visitors may want to donate via contactless payment.
2. Privacy Concerns
Digital payments leave a data trail. Moving away from cash leaves behind some security concerns, but online payments brings the risk of data breaches and hacking, meaning having a robust privacy and data protection policy and infrastructure is essential.
3. Children, Rural, and Older Audiences
Cultural organisations in rural areas may face additional challenges when going cashless, as internet and mobile connectivity can still be unreliable in some parts of the UK. For organisations that rely heavily on rural or older audiences, the transition to cashless payments might not be well-received. Older demographics are less likely to use digital payment methods and may feel alienated by a sudden shift away from cash. Does your audience include children with pocket money to spend, or even better, their grandparents?
Balancing the Pros and Cons: What’s Next for Cultural Organisations?
Going cashless is not a one-size-fits-all solution. For organisations considering the transition, there are several factors to weigh before making a decision.
1. Visitor Demographics
Understanding your audience is key. For cultural organisations that attract a younger, more tech-savvy crowd, the shift to cashless may be relatively seamless. International tourists may expect to be able to spend hard currency, and avoid unexpected and expensive bank charges. However, venues with older or more rural visitors need to consider the potential drawbacks. Offering a mix of payment options, such as retaining cash while expanding digital payment methods, might be the most practical solution for those hesitant to exclude cash-dependent visitors.
2. Investing in Technology Infrastructure
Moving to a cashless system requires an investment in technology. Organisations will need reliable payment platforms, secure internet connections, and possibly staff training on digital payment systems. For cultural organisations with limited budgets, this might be a barrier to adopting cashless payments.
3. Managing the Transition
If an organisation decides to go cashless, a gradual transition may be the most considerate approach. Offering ample communication about the change, along with educational resources for visitors, can ease the process. For instance, providing clear signage, assistance at payment points, and guidance on how to use contactless systems can help bridge the gap for those unfamiliar with cashless transactions.
Conclusion
Our survey results highlight the growing trend toward cashless payments in the cultural sector. While over 30% of organisations have already made the shift, a significant proportion remain unconvinced, citing concerns around accessibility, inclusivity, and privacy. For many organisations, a hybrid approach—offering both cash and digital payments—may strike the right balance.
As the UK continues to embrace digital payments, cultural organisations will need to navigate these changes thoughtfully, ensuring they can meet visitor expectations while remaining inclusive. With careful planning and consideration of audience needs, going cashless can offer significant benefits, but it must be done in a way that aligns with each organisation’s values and the communities they serve.
