Several major UK supermarkets have moved to partially cashless operations, particularly at petrol stations and self-service, rather than full store closures. Tesco removed cash at 40 cafe sites, while Asda transitioned nearly 100 petrol station kiosks to card-only. Waitrose also implemented card-only self-service checkouts across its 300+ stores.
Tesco, Asda and Sainsbury's have stopped accepting cash in some stores and supermarkets - with shoppers warned. Last year, Tesco announced it would be going cashless at 40 UK cafe sites. Asda has also gone cash-free in nearly 270 petrol stations, where customers can only pay by card at the pumps to fill up.
This includes Aldi, Co-op, and Waitrose. Aldi still has both manned tills and self-service checkouts across its 1,000 UK sites but doesn't have any cafes or petrol stations which has been the main target of cashless schemes so far.
Major supermarkets want to stop taking cash and cards
Does Tesco accept cash?
Payment. We accept the following payment methods: Visa, Mastercard, American Express, Maestro, Visa Debit and Tesco Bank credit and debit cards. We don't currently accept Visa Electron cards or Tesco gift cards. We do not accept cash, cheques, any paper vouchers, third-party coupons, or any other forms of payment.
To put it abruptly, yes, shops in the UK can legally refuse cash payment. While cash is considered a legal tender, businesses have no legal obligation to accept it and have the right to set their own payment policies.
The Aldi £13 rule refers to its significant pay increases for UK store assistants, making it the first supermarket to pay above £13 per hour, with rates rising to £13.35 nationally and £14.71 within the M25 from March 2026, with even higher rates for experience, all part of its pledge to lead on pay and offer paid breaks.
Nearly 100 Asda stores across the UK are going cash-free – here's the full list of locations. Contactless is now king, apparently. As we see fewer shops accepting cash and more and more shoppers choose cards over coins, Asda has confirmed that nearly 100 of its kiosks across 82 petrol stations are going card-only.
Not yet. However, a 2024 report from the International Monetary Fund suggests that we might not be too far away from seeing the first. It suggested that Sweden would be the first completely cashless economy as soon as the end of 2025. This is unlikely to happen now, though.
Tesco's "new cash rule" involves banning cash payments at 40 of its in-store cafes, requiring customers to use digital kiosks and pay by card or contactless instead, a move aimed at speeding up service, though it faced criticism for impacting elderly or less tech-savvy shoppers. While some stores also have card-only self-checkout lanes, the main change affects the cafe experience, compelling digital ordering and payment for food and drinks at these specific locations.
UK Finance research has shown that 39% of adults live an almost cashless life. As well as predicting that cash payments in the UK will continue to decline, and that by 2031, cash will account for 6% of all payments.
It is not illegal to keep cash at home in the UK, but it should be stored securely to mitigate risks. The amount of cash to have on hand varies, but a small amount for emergencies is recommended while keeping most in a secure bank account.
Booths has less shrinkage and 'faster' service since ditching self-checkouts. Booths has less shrinkage, faster service and more satisfied customers as a result of its decision to strip out self-service tills, MD Nigel Murray has claimed.
Aldi's "5-day policy" is an unofficial shopper-driven strategy where you can ask for discounts (often 30-75% off) on perishable items (like meat, bread) expiring within five days, though it depends on store discretion and cashier policy, as there's no official company-wide rule, with some stores automatically stickering items and others requiring you to ask at checkout for potential savings on products nearing their sell-by dates.
The Morrisons "£10 rule" is a loyalty perk for More Card members: spend £10 or more in a single in-store shop, scan your card, and you receive a voucher for a free refillable hot drink (like coffee, tea, or hot chocolate) at a Morrisons Café, redeemable within seven days, excluding takeaway or Morrisons Daily locations. This promotion offers a nice bonus for regular shoppers, though it's important to note restrictions like the single-use voucher, the 7-day limit, and exclusions for certain store types or online purchases.
Cash is legal tender in the UK, but businesses are not obliged to serve people who only want to pay with notes and coins. Some countries, such as Australia, are planning rules that would force essential services to accept cash.
The UK is rapidly moving towards being a low-cash, but not fully cashless, society, with digital payments dominating, yet cash remains crucial for millions, especially vulnerable groups, leading to government efforts to protect access via legislation, banking hubs, and ATMs, even as some businesses go card-only and digital ID plans emerge. While cash use has plummeted (less than 10% of payments in 2024/25), the Bank of England and officials stress that a completely cashless system isn't feasible or desirable yet, focusing on maintaining choice and access for everyone, including the elderly and low-income individuals.
There is also a practical security advantage with cash. Although debit and credit cards often have personal identification numbers (PIN) and chips for extra security, there is less risk of identity theft or your information getting stolen online when using cash.
The short answer is no—cash-in-hand payments are not illegal. However, things can get complicated if the right legal procedures aren't followed. While paying employees in cash may seem easy, employers and employees must ensure compliance with tax and employment laws.
