Post Office warns retailers to stock cash for payment outages

The Post Office has issued a warning to retailers, advising them to ready their operations for payment system failures by ensuring cash remains accessible when digital transactions become unavailable. Updated figures reveal that outages impose a financial burden on high street businesses, averaging £255 per hour in lost revenue. Nearly a quarter of affected stores must either refuse service or halt transactions until systems recover.

Research conducted on behalf of the Post Office reveals that UK retailers faced an average of three payment disruptions in the past year. Nearly one-third of adults (29%) encountered difficulties completing purchases because their preferred payment method was inaccessible. Among those impacted, 21% noted cash as the only viable alternative at the time.

While 81% of businesses recognize cash as essential for emergencies, only 32% currently offer it as a payment option. This inconsistency exposes a critical weakness in business continuity: 69% of retailers can sustain operations during digital disruptions if cash is available, yet 90% of their contingency plans exclude it entirely as a fallback.

Cash remains the primary payment method for over one-fifth of consumers (22%) and is used by 58% for everyday purchases. Though contactless cards dominate in popularity, cash still facilitates £27 billion in annual transactions, including cash-only payments. The Post Office’s updated recommendations now emphasize cash inclusion in emergency preparedness.

The guidance follows the government’s Be Ready initiative, which promotes cash retention for households during crises. The Post Office’s advice stresses transparent communication with customers and practical adjustments to maintain service continuity during outages.

Ben Hunter Woollard, head of banking at the Post Office, explained that payment failures can halt trading within seconds, leading to lost sales and frustrated customers. “Cash has helped many retailers continue trading during recent disruptions, but it’s rarely included in formal contingency plans,” he said. “Retailers should also consider how they’ll keep serving customers if digital payments go down in emergencies.”

Retailers frequently base payment decisions on broader trends rather than local demand. Only 28% consider community preferences when selecting methods, yet ignoring these needs risks alienating customers. Convenience stores, for instance, nearly universally accept cash (99%), proving its value as a reliable alternative when digital systems fail.

The Post Office’s guidance now helps businesses align payment strategies with both customer expectations and operational resilience. It includes specific steps for clearly signaling available payment options and modifying contingency plans to reduce disruptions. The focus remains on ensuring retailers can adapt quickly when digital systems falter.