Britain’s move away from cash is accelerating, raising fresh questions about how long notes and coins will remain part of everyday life.
New figures show the country is becoming increasingly dependent on digital banking, while billions of cash payments disappear from the economy.
Cash accounted for just eight per cent of all UK payments in 2025, according to UK Finance’s latest Payment Markets Report.
That is a dramatic fall from 45 per cent in 2015, with the industry body predicting the proportion will drop further to four per cent by 2035.
The number of cash payments fell from 4.3 billion in 2024 to 3.9 billion last year. UK Finance expects this to almost halve to around two billion transactions over the next decade.
At the same time, remote banking has become nearly universal. Some 91 per cent of UK adults used online, mobile or telephone banking in 2025, up from 88 per cent the previous year.
Mobile banking was the most popular option, used by three-quarters of adults to manage their money.
Cash accounted for just eight per cent of all UK payments in 2025
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PAUK Finance said: “Looking ahead to 2035, the UK payments market is expected to continue growing while becoming more digital.”
Despite the rapid decline, the report stressed that cash use would fall further “but not disappear”.
Around 1.4 million UK adults still rely mainly on notes and coins for their everyday spending, meaning access to cash remains essential for a significant number of people.
At the other end of the scale, an estimated 19 million adults now use cash no more than once a month. Cash machines also remain important, with 49.3 million people using one during 2025.
The shift towards digital payments goes far beyond traditional banking apps. In 2025, 65 per cent of UK adults were registered with at least one mobile payment service, up from 57 per cent in 2024.
Younger adults were much more likely to use mobile wallets. Some 89 per cent of people aged between 25 and 34 were signed up, compared with only 29 per cent of those aged over 65.
Contactless payments, including services such as Apple Pay and Google Pay, accounted for 39 per cent of all UK transactions last year. This was up sharply from just three per cent a decade earlier.
The number of contactless payments increased from 18.9 billion in 2024 to 19.2 billion in 2025.
Debit cards remained the UK’s most popular way to pay, accounting for 26.6 billion transactions and more than half of all payments.
The shift towards digital payments goes far beyond traditional banking apps
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GETTYFaster Payments and other remote bank transfers were the second most-used method, reaching 6.2 billion transactions.
Consumers are increasingly using these transfers to split bills or send money to friends and relatives, replacing payments that may previously have been made in cash.
By 2035, the number of Faster Payments and other remote transfers is expected to reach 8.4 billion, representing 16 per cent of all UK transactions.
Buy now pay later services also gained ground, with an estimated 12.9 million adults — 22 per cent of the population — using them at least once during 2025. The sector was brought under Financial Conduct Authority regulation in July 2026.
Overall, 49.7 billion payments were recorded across the UK last year, a 2 per cent annual rise. Individuals were responsible for 41.6 billion of those, with businesses accounting for the remaining 8.1 billion.
Experts explain Link would keep working to guarantee free cash withdrawals on the high street
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GETTYAdrian Buckle, head of research at UK Finance, said: “UK Finance’s latest data show that the UK is now a predominantly digital economy when it comes to making and receiving payments.”
He added: “The industry is now entering a new phase of innovation.”
John Howells, chief executive of ATM and cash access network Link, said: “The way we pay for things is changing at pace. While cash use continues to decline in every part of the UK, it remains vital for millions of people.”
He pledged that Link would keep working to guarantee free cash withdrawals on the high street, adding: “As policymakers work on how payment systems are designed in the future, it’s clear that those systems will still need to work with cash.”
Gareth Oakley, chief executive at Cash Access UK, said: “What’s vital to recognise is that there are millions of people who rely on cash and face-to-face services. Technology doesn’t always work for everyone, and for so many there isn’t an alternative to cash.”
He pointed to the organisation’s expanding network of banking hubs, with close to 250 now open across the country, serving those who still depend on in-person financial services.