- Demand for foreign currency has picked up among 18-24 year olds going abroad
- They are now four times more likely to order cash than before the pandemic
Young people are rediscovering the benefits of using cash rather than cards when spending on holiday, according to a new survey.
Jet-setting 18 to 24 year olds are four times more likely to take out foreign currency than use cards or mobile apps to spend abroad compared to four years ago, data from travel money chain No1 Currency has revealed.
This age group now accounts for 13.7 per cent of foreign currency orders placed on No1 Currency’s website, rising from 3.4 per cent in 2019.
Watching the pennies: Young people on holiday are becoming more likely to spend in cash because it helps them keep their money in check, according to a survey
It echoes a growing trend for cash usage in the UK. Data from industry body UK Finance found that cash usage grew for the first time in a decade last year, and Nationwide Building Society has recorded a second annual spike in cash withdrawals from its ATMs.
There are a plethora of current accounts and apps that offer free or cheap spending and budgeting abroad, and 18-24s are by far the most likely to use mobile and contactless payments at home according to UK Finance.
Just this week, another foreign currency exchange app entered the market in the UK. HSBC-backed Zing is a multi currency app debit card app set up to rival challengers Revolut and Wise.
Those apps have raked in millions of customers with their offer of cheap foreign currency, and many use them along with other app-based current accounts such as Monzo and Starling for fee-free spending abroad.
But under-25s are said to be turning to good old fashioned cash because having the money in their hand helps them to keep to a budget on holiday.
In sharp contrast to this trend, barely one in 10 orders placed for foreign banknotes now come from over 65s, down by over a third compared to the proportion recorded in 2019 when that figure was 17.1 per cent.
Cash is back: There has been a rise in the number of under 25s choosing to use foreign currency when travelling abroad
There was an overall surge in demand for foreign currency in 2023, No1 Currency reports.
In many countries, cash is very much still king so having some local currency in your pocket can make travel simpler – whether you’re paying for a taxi or leaving a tip.
However, there are also benefits to using a credit or debit card – as these can be cancelled if lost or stolen abroad, and banks may offer payment protection if something else goes wrong.
Simon Phillips, managing director at No1 Currency, said: ‘The jump in demand for foreign currency from Britons heading abroad is about more than just the travel sector’s post-pandemic resurgence.
‘We’re seeing increasing numbers of UK travellers – including digital natives who typically use their mobile phone to pay for nearly everything at home – opt for the ease, practicality and certainty of cash while abroad.’
