Digital advancement at M&S Bank allegedly disadvantages elderly, claim activists
In a move that could potentially impact a significant number of its customers, M&S Bank has announced it will no longer accept cash, cheque, or paper-based bank transfers (giro credit) for payments starting from October 2025 [1][4]. The bank claims that only 1% of its customers use these legacy payment methods, with the majority preferring digital channels such as direct debit, online, and phone payments [1].
The decision, initially temporary since April 2025, has now been made permanent. This shift towards digital payments has raised concerns among campaigners and pensions experts who fear it will disproportionately harm older and disabled people, who may rely on cash, cheques, or in-person payments and may have limited access or familiarity with digital banking [1][4].
Critics argue that these customers could feel marginalized or forced away by the bank, risking alienating a demographic that has been loyal for decades [1][4]. Baroness Ros Altmann, a pensions expert, has expressed her concerns, stating that this move could harm older and disabled people who may rely on cash or in-person payments [1].
On the other hand, M&S Bank has introduced a pay-by-bank option for customers to pay their credit card via the app [2]. The bank has also stopped accepting payments over bank, building society, or post office counters [3].
It remains unclear if the changes made by M&S Bank will lead to an increase in the use of online investing platforms. The bank did not provide information about the impact of the changes on these platforms [5]. However, businesses should think carefully before limiting or withdrawing physical payment mechanisms, according to Age UK, as not everyone is comfortable banking online or using apps [6].
AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212 are examples of online investing platforms available. Customers can also pay by direct debit or via their bank with M&S Bank [7].
In summary, M&S Bank's decision to remove legacy payment methods may make life more difficult for older customers, pensioners, and those who prefer cash or paper payments. The bank's focus is now entirely on digital payments, which may exclude or disadvantage those without digital access or skills. Campaigners fear the move by M&S Bank will particularly affect older individuals who may not have access to electronic or digital banking [1][4].
- As M&S Bank transitions exclusively to digital payments, concerns arise about the potential impact on pensioners and individuals who prefer cash or paper transactions, due to their limited access or familiarity with such methods.
- With the permanent absence of legacy payment methods, critics argue that M&S Bank might unintentionally force away a loyal demographic, including older and disabled customers, thus potentially alienating them.
- The shift towards digital banking and investments by M&S Bank, coupled with the increasing popularity of online investing platforms such as AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212, could lead businesses to reconsider their approach to offering both digital and traditional payment options.
