The decline in cash usage in Britain experienced a slower pace in 2025, according to new data from UK Finance. Despite this slowdown, cash is projected to represent only 4% of all payments by 2035. Last year, cash payments dropped to 3.9 billion, a decrease from 4.3 billion in the preceding year. Cash accounted for 8% of all payments in 2025, down from 9% in 2024 and a significant decrease from 45% in 2015.
This trend reflects that cash remains important for a substantial portion of the population. Approximately 1.4 million individuals, or 3% of British adults, primarily use cash for their daily expenses. UK Finance emphasized the importance of maintaining access to cash to ensure consumer choice and to prevent vulnerable individuals from being excluded as payment preferences evolve. Around 19 million adults, or one-third of the adult population, reported using cash once a month or less frequently.
John Howells, chief executive of Link, stated that while cash use is declining across the UK, it remains vital for millions. Link plans to continue efforts to ensure free access to cash for consumers. Adrian Buckle, head of research at UK Finance, noted that while cash usage is declining more gradually, the growth of many other payment methods is stabilizing as the market matures.
Digital payment methods continue their upward trajectory. In 2025, over nine in ten adults in Britain used at least one form of online, mobile, or telephone banking. Debit cards remained the most frequently used payment method, accounting for over half of all transactions. Contactless payments, made via card or mobile device, increased by 2% to 19.2 billion in 2025, representing 39% of all payments—a sharp rise from just 3% a decade prior.
Mobile banking is the preferred digital option, used by 75% of adults. Mobile wallet usage has also become more widespread since its introduction in 2015. Nearly two-thirds of adults were registered for at least one mobile payment service in 2025, up from 57% in 2024. Mobile wallet users are predominantly aged between 25 and 34, with only 29% of users over 65.
The UK payments market is expected to continue growing and becoming more digitalized by 2035. While cash use is anticipated to fall further, it is not expected to disappear entirely. Some shoppers have expressed frustration with an increasing number of businesses transitioning to cashless operations, and the closure of bank branches, attributed to changing consumer habits and reduced cash use, has raised concerns for those reliant on cash.