A report by BBC News has challenged the common misconception that cash transactions are better for small businesses.

Ella Locke, who owns a café which does not accept cash, said dealing with physical money is “not very cost effective from a labour perspective”.

“At the press of a button, at the end of the day, what was a half an hour task has gone down into a two-minute task,” she told the BBC.

“It saves significantly on our labour and as a small business [that is] one of the big things you’re trying to always do.”

Liberty Bus director Kevin Hart said the 3% of bus fares paid for in cash was costing his company £65,000 a year.

He said: “We keep the option open because it’s part of our contract – we’re operating on the contract on behalf of the Government of Jersey.

“As long as we have to take cash, we will – if I could switch off the cash tomorrow, would I? Potentially, yes, because there is a saving there for us.”