Online Payments vs Cash Collection: Which Is Better for Community Organisations?

Online payments are better than cash collection for most community organisations in 2026, offering lower administrative costs, automatic record-keeping, and improved cash flow — though cash still plays an important role for accessibility and inclusion. This guide compares both approaches in detail, helping you develop a payment strategy that maximises income while remaining accessible to all members of your community.

TL;DR

• Online payments reduce admin costs by 60-80% compared to cash when you factor in counting, banking, reconciliation, and security.
• Cash use has dropped to ~12% of UK transactions (UK Finance, 2024), but 5.4 million adults still rely primarily on cash.
• The best approach is "digital first, cash accepted" — defaulting to online payments while maintaining cash for accessibility.
• Platforms like Plinth integrate payment collection with bookings, eliminating manual reconciliation.
• No-show rates drop 30-40% when payments are collected at booking rather than on the day.

Who this is for: Charity trustees, finance officers, and operations managers weighing up digital payment adoption.

The State of Payments in the UK Charity Sector

The UK has undergone a dramatic shift in payment preferences over the past decade. According to UK Finance's "UK Payment Markets" report, cash accounted for just 12% of all payments in 2024 — down from a time when cash represented the majority of payments as recently as a decade ago. This trend has been accelerated by the COVID-19 pandemic, which prompted many organisations to adopt contactless and online payment methods for the first time.

However, the charity and community sector has been slower to adopt digital payments than the commercial sector. A 2024 survey by Charity Digital found that 43% of small charities still rely on cash as their primary payment method for services, despite the majority of their beneficiaries preferring digital options.

The gap between public preference and charity practice represents a significant missed opportunity. Organisations that modernise their payment approaches can increase income, reduce costs, and improve the experience for everyone involved.

Understanding the true costs and benefits of each payment method is the first step toward developing an effective payment strategy.

Detailed Comparison: Online Payments vs Cash

Cost Comparison

The apparent "free" nature of cash is misleading. When you account for staff time, banking charges, security measures, and error rates, cash handling typically costs community organisations 3–5 times more than digital payment processing.

Administrative Burden

Online payments generate automatic records for every transaction, including the payer's name, amount, date, time, and what they paid for. When using an integrated platform like Plinth, payments are automatically matched to bookings, creating a complete audit trail with zero manual effort.

Cash collection requires manual recording at every stage: issuing receipts, counting takings, recording in a cash book, preparing bank deposits, and manually matching payments to the services they relate to. Research from NCVO estimates that administrative tasks consume 30% of a typical small charity's staff capacity, with payment handling being a significant contributor.

The administrative difference becomes most pronounced at scale. An organisation handling 50 cash payments per week faces a very different workload than one processing 50 online payments — even though the income may be identical.

Cash Flow and Financial Planning

Online payments provide immediate confirmation of income and predictable cash flow. Stripe pays out funds within 2–3 business days, and you can see exactly what is coming in your dashboard at any time. Advance payments for bookings also improve cash flow by collecting income before services are delivered.

Cash collection creates unpredictable cash flow. Income is only confirmed when someone physically pays, and banking delays mean funds may not reach your account for days after collection. For activities that allow pay-on-the-day, there is also the risk of no-shows — people who booked a place but did not attend and did not pay.

According to the Charity Finance Group, cash flow problems are the single biggest financial challenge facing small charities, cited by 52% of organisations in their 2024 annual survey. Switching to upfront online payments directly addresses this issue.

Security and Risk

Online payments carry virtually no security risk for the charity itself. The payment processor (e.g., Stripe) handles all sensitive card data under PCI DSS Level 1 security standards. Funds are deposited directly into your bank account electronically. There is no physical cash to count, transport, or secure.

Cash collection introduces multiple security risks:

• Theft or loss: Cash can be stolen, lost, or miscounted. The Charity Commission's annual fraud report indicates that cash handling is involved in a significant proportion of reported charity fraud cases.
• Two-person policy: Best practice requires two people to count and verify cash, doubling the staff time required.
• Transport risk: Taking cash to the bank carries risk, particularly in rural areas or during winter evenings.
• Insurance implications: Charities holding significant amounts of cash may face increased insurance premiums or coverage requirements.

While individual incidents may be rare, the cumulative cost of cash security measures represents a significant and often unrecognised expense for community organisations.

Accessibility and Inclusion

This is where the case for cash remains strongest. Not everyone can use digital payments, and community organisations have a particular responsibility to ensure their services remain accessible to all.

Groups who may rely on cash:

• Older adults: While digital adoption among over-65s has increased significantly, approximately 2.4 million people aged 65+ in the UK do not use the internet regularly (ONS, 2024).
• People in financial difficulty: Those without bank accounts or with restricted banking access — estimated at 1.2 million UK adults — may rely on cash for daily transactions.
• Asylum seekers and refugees: Many people in the asylum system receive support via prepaid cards that may not work with all online payment platforms, and some rely on cash.
• People with certain disabilities: Some cognitive or visual impairments make digital payments more challenging, though assistive technology is improving rapidly.

However, the accessibility argument is often overstated. A 2024 report from the FCA found that 95% of UK adults have access to a debit card, and smartphone ownership among UK adults stands at 92%. For most community organisations, the vast majority of service users can use digital payments.

The recommended approach: digital first, cash accepted. Default to online payments for efficiency and record-keeping, but always maintain a cash option for those who need it. Plinth makes this easy — online bookings collect payment automatically, while walk-in attendees can be manually added to sessions.

Impact on Attendance and No-Shows

One of the most significant benefits of online payments is their effect on attendance rates. When people pay at the point of booking, they are far more committed to attending.

No-show rates by payment method:

Community organisations that switch from pay-on-the-day to pay-at-booking typically see a 30–40% reduction in no-shows. For a community centre running 20 activities per week with 15 places each, even a modest reduction in no-shows could mean 30–60 additional attendances per week — places that would otherwise have gone unused.

Reducing no-shows not only increases actual attendance but also means that waitlisted individuals can be offered places, improving overall utilisation of your services.

Record-Keeping and Reporting

Online payments create automatic, comprehensive financial records. Every transaction is logged with full details, making it straightforward to:

• Produce financial reports for trustees
• Evidence income for funders and grant applications
• Prepare for audits
• Calculate Gift Aid (when applicable)
• Track income by activity, venue, or time period

When payments are processed through Plinth, reporting goes further — you can see income broken down by activity type, instructor, venue, or time period, all linked to attendance data.

Cash records depend entirely on the diligence of the person recording them. Even with the best processes, manual records are prone to errors, omissions, and inconsistencies. The Charity Commission's CC8 guidance on internal financial controls specifically highlights cash handling as an area requiring robust procedures — procedures that are expensive and time-consuming to maintain.

According to the Charity Commission, inadequate financial record-keeping is among the top five concerns raised during regulatory engagement with small charities. Digital payment records effectively eliminate this risk.

When Cash Is Still the Right Choice

Despite the clear advantages of digital payments, there are scenarios where cash remains appropriate or necessary:

Walk-in services: Drop-in sessions, community cafes, and other services where advance booking is not required may find cash simpler for low-value transactions.

Very small organisations: All-volunteer groups with minimal transaction volumes may find the overhead of setting up digital payments outweighs the benefits — though platforms like Plinth have made this much simpler.

Community events: Fetes, markets, and outdoor events where internet connectivity may be unreliable can benefit from cash acceptance alongside card readers.

Crisis services: Organisations working with people in crisis situations where asking for digital payment would be inappropriate or impossible.

The key principle is that cash should be an accessibility option, not the default. Designing your payment processes around digital payments while accommodating cash is more efficient than the reverse.

How to Transition from Cash to Digital Payments

Step 1: Audit Your Current Payment Mix

Before making changes, understand your current situation:

• What percentage of your income comes via cash vs other methods?
• How much staff time is spent on cash handling?
• What are your current banking charges for cash deposits?
• Which service users rely on cash and why?

Step 2: Choose the Right Platform

For community organisations running activities and events, Plinth provides the most integrated solution — combining online booking with payment collection via Stripe Connect. Your organisation connects its own Stripe account and payments flow directly to you.

Step 3: Communicate the Change

Give your community clear notice of the transition:

• Explain the benefits (guaranteed places, easier booking, less queuing)
• Emphasise that cash will still be accepted for those who need it
• Provide support for anyone unfamiliar with online booking
• Consider running "digital helper" sessions where volunteers assist people with their first online booking

Step 4: Maintain Cash Accessibility

Keep a cash option available, but make it the exception rather than the rule. This might mean:

• Accepting cash at reception for walk-in attendees
• Offering to book and pay on behalf of someone who visits in person
• Providing alternative payment arrangements for regular attendees who cannot pay online

Step 5: Monitor and Adjust

Track the transition over 3–6 months:

• What percentage of payments have moved online?
• Have no-show rates improved?
• How much staff time has been freed up?
• Are there any accessibility concerns that need addressing?

Frequently Asked Questions

Will going digital exclude vulnerable people from our services?

Not if you implement it thoughtfully. The "digital first, cash accepted" approach means that online payment is the default, but cash and alternative arrangements remain available for anyone who needs them. In practice, most community organisations find that the vast majority of their service users — including older adults — are comfortable with online payments once they have completed the process once. Offering initial support (either in person or by phone) helps smooth the transition.

How much will we save by switching to online payments?

Savings depend on your current volume and processes, but most community organisations processing £30,000–£100,000 annually save between £2,000 and £8,000 per year in total when switching from primarily cash to primarily online payments. This includes savings on staff time (the largest component), banking charges, security costs, and reduced losses from errors and no-shows.

What if our internet connection is unreliable?

Online payments do not require internet connectivity at the point of service delivery. With Plinth, bookings and payments are collected online in advance — so even if your internet goes down during a session, everyone has already booked and paid. For walk-in payments, consider a mobile-connected card reader (like SumUp) as a backup that uses 4G/5G rather than WiFi.

Do online payments work for very small amounts?

The fixed component of transaction fees (20p per transaction via Stripe) means that very small payments (under £2) incur proportionally higher fees. For a £1 payment, the fee of approximately 21.4p represents over 21% of the transaction. For such cases, consider whether bundled payments (e.g., a block of 10 sessions) or cash collection makes more sense. For payments over £5, online processing is cost-effective.

How do we handle refunds for online payments?

Refunds for online payments are straightforward — you can issue full or partial refunds through your Stripe Dashboard or through Plinth's admin interface. The payer receives their money back within 5–10 business days. Note that Stripe does not refund its original processing fee. A clear refund and cancellation policy, communicated at the point of booking, helps manage expectations and reduces disputes.

What about data protection and GDPR?

Online payment processing through Stripe is fully compliant with UK GDPR. Stripe is the data processor for payment information, and your organisation does not see or store sensitive card details. When using Plinth, you benefit from both Plinth's and Stripe's data protection measures. All data is encrypted and processed in accordance with UK data protection law.

Conclusion

For most UK community organisations in 2026, online payments are clearly the better choice as the primary payment method. They cost less than cash when total costs are considered, provide automatic record-keeping, improve cash flow, reduce no-shows, and free up staff time for mission-critical work.

However, the best approach is not to eliminate cash entirely but to adopt a "digital first, cash accepted" strategy that maximises efficiency while maintaining accessibility. Platforms like Plinth make this transition straightforward by integrating payment collection with activity bookings, room hire, and event management.

Ready to modernise your payment approach? Book a demo of Plinth to see how integrated online payments can transform your operations.

Recommended Next Pages

• Best Payment Solutions for Charities – Compare the top payment platforms for UK charities and community organisations.

• The Complete Guide to Stripe Payments for Charities – Everything you need to know about Stripe fees, setup, and nonprofit discounts.

• How to Take Payments for Activities, Events and Room Hire – A practical guide to collecting payments for your services.

• Payment Reconciliation for Charities – How to simplify financial reporting with automatic reconciliation.

• Plinth Payments Features – See how Plinth's integrated payment processing works.

Last updated: February 2026

For more information about transitioning to online payments, contact our team or schedule a demo.