Forgetting cash doesn’t just cause holiday embarrassment, it’s a security risk

It’s assuming that you can always pay for anything, anywhere with a tap of your card or smartphone.

Dashing through unfamiliar streets in search of an ATM to get some cash to pay for the restaurant meal you’ve just enjoyed is not a fun experience, but it’s surprisingly common.

A new survey for Sainsbury's Travel money of 2,000 Britons who’ve been abroad in the past year found that 23% had encountered problems when trying to make a purchase with their UK debit orcredit card. A further 16% had a problem when trying to pay by smartphone, either because the transaction wouldn’t go through, or contactless payment wasn't an option.

By contrast, just 7% had an issue when using cash abroad.

People in other countries carry and spend cash in a way that Britons do not, and a surprising number of foreign retailers and restaurants, even in holiday hotspots, only accept cash.

Digital payments have become the norm in the UK, and traditional notes and coins account for fewer than one in 10 transactions here.

Yet cash remains part of daily life in many countries. Across the Eurozone, people make more than half of their in-person purchases with cash. It’s by far the most popular way to pay in Italy, where it accounts for 61% of purchases, Germany (53%), Spain (57%) and Malta (67%).

The figures are even higher in destinations further afield. 85% of Mexicans say they use cash for all purchases under £20.

Many of us in the UK have lost the cash habit, and the average Briton now keeps just £20 in cash in their pocket or purse. By contrast, the typical Austrian carries €80 (£68.60) and the average Eurozone resident €59 (£50.60). The average American carries $67 (£49.90) in cash each day.

Even if you rarely use cash at home, the secret to holiday calm is to spend like a local rather than a tourist. Carrying some local currency, along with your cards and phone, makes it easier to pay for tips, taxis or tickets. But it also gives you the confidence that you’re ready for anything and won’t miss out on the things you want to do.

There’s a serious side to this too. Keeping some cash with you doesn’t just spare you from awkward moments in shops or restaurants; it’s also a protection against tech disruption.

Last year nationwide power blackouts in Spain and Portugal turned millions of people’s smartphones into expensive paperweights and left them with only one way to pay for things - cash. Cyberattacks can cripple electronic payments infrastructure too, so carrying cash is the best way to be sure you can always buy essentials like food and fuel.

This is why several countries now advise their citizens to always keep some cash for emergencies. Authorities in the Netherlands, Austria and Finland suggest that everyone should hold between €70 and €100, or enough to cover their essential needs for about 72 hours.

Even in Sweden, where cash usage is lower than the UK’s, the Central Bank recommends that every adult should keep 1,000 Krona (£77.80) in cash at home, just in case.

When you’re far from home, the confidence that cash gives you is priceless. Wherever your travels take you, the right local currency is a holiday must-have, just like travel insurance, your phone and passport.

For ease and peace of mind, stock up before you travel. That way you’ll be ready for anything and will never have to spend the evening washing up in a restaurant kitchen to pay for the dinner you’ve just eaten.

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Simon Phillips is Managing Director of retail foreign exchange at Fexco, which owns Sainsbury’s Travel money

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