Cash use in the UK fell to 3.9 billion payments in 2025, down from 4.3 billion the previous year, and is expected to account for just 4% of payments by 2035, according to UK Finance. The industry body’s estimates show that around 1.4 million UK adults mainly use cash for day-to-day spending, while 19 million use cash once a month or less.
Cash decline and future projections
Cash represented 8% of all payments in 2025, falling from 9% in 2024 and 45% in 2015. By 2035, cash use is expected to account for just 4% of payments made in the UK, with around two billion transactions, the report said. It added: “While cash payments decline, cash machines continue to play dominant role in access to cash as 49.3 million people used one in 2025.”
More than nine in 10 UK adults were using at least one form of online, mobile or telephone banking in 2025, according to the banking and finance industry body.
Rise of Faster Payments and contactless
Faster Payments and other remote banking payments reached 6.2 billion in 2025, making them the second most-used payment method, UK Finance said. The report said: “Consumers increasingly use mobile and online banking for bill payments, transfers and person-to-person transfers, while businesses continue to rely heavily on Faster Payments for account-to-account transfers.”
People are using Faster Payments to split bills and send money to friends and family, replacing transactions that would have previously involved cash, UK Finance said. Debit cards were the most used payment method last year, with 26.6 billion payments, accounting for more than half of all payments in the UK.
UK Finance predicted that debit cards are forecast to reach 29.5 billion payments by 2035. During 2025, the number of contactless payments made in the UK increased to 19.2 billion, from 18.9 billion payments the previous year. This was driven by the continued rollout of card acceptance devices, consumer preferences and the continuing growth in popularity of mobile contactless payment services such as Apple Pay and Google Pay, the report said.
Impact on consumers and industry response
Around two-fifths (39%) of payments in the UK were made using contactless methods in 2025. A decade ago, contactless made up 3% of transactions. By 2035, contactless is expected to make up 41% of payments. Meanwhile, an estimated 12.9 million, or 22% of UK adults used buy now pay later (BNPL) services at least once last year, the report said.
Adrian 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. Faster Payments continue to grow strongly, while cards remain central to everyday spending.
“The trends of the past decade are becoming increasingly established. Cash usage is declining, albeit more gradually, and growth across many payment methods is stabilising as the market matures. The industry is now entering a new phase of innovation.
“New payment technologies have the potential to reshape how people and businesses move money, and continued close engagement across government, regulators and industry will be essential to unlock that potential.”
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. Link will continue working to ensure people can access cash for free on the high street.
“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: “We know more people are comfortable and choosing to pay with contactless cards or with their smartphones. As a result, cash use is falling.
“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. For those who rely on cash and for many more, who still need basic banking services, we are pleased to be rolling out banking hubs across the country, with almost 250 open already.”
