Cash is expected to account for just 4% of payments in the UK by 2035, down from 8% in 2025, according to UK Finance's Payment Markets Report for 2025. The report highlights a continued shift towards digital payments, with more than nine in 10 UK adults using some form of online, mobile, or telephone banking in 2025.
Digital Banking Adoption Rises
The proportion of adults using remote banking increased from 88% in 2024 to 91% in 2025. Mobile banking remains the preferred option, used by three-quarters (75%) of adults. Nearly two-thirds (65%) of UK adults were registered for at least one mobile payment service in 2025, up from 57% in 2024.
Mobile wallet adoption varies by age, with around nine in 10 (89%) of 25 to 34-year-olds registered, compared with 29% of over-65s. The report notes that mobile contactless is increasingly replacing physical card contactless.
Cash Use Declines but Remains Vital
Cash use fell to 3.9 billion payments in 2025, down from 4.3 billion the previous year. Around 1.4 million UK adults mainly use cash for day-to-day spending, while 19 million use cash once a month or less frequently. By 2035, cash is expected to account for around two billion transactions.
Despite the decline, cash machines continue to play a dominant role in access to cash, with 49.3 million people using one in 2025. 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."
Debit Cards and Contactless Growth
Debit cards were the most used payment method in 2025, with 26.6 billion payments, accounting for more than half of all payments. UK Finance predicts debit cards will reach 29.5 billion payments by 2035. Contactless payments increased to 19.2 billion in 2025, up from 18.9 billion the previous year, making up 39% of all payments. A decade ago, contactless made up just 3% of transactions, and by 2035 it is expected to account for 41%.
Faster Payments and BNPL
Faster Payments and other remote banking payments reached 6.2 billion in 2025, making them the second most-used payment method. This is expected to grow to 8.4 billion payments by 2035, accounting for 16% of UK transactions. People are using Faster Payments to split bills and send money to friends and family, replacing transactions that would have previously involved cash.
An estimated 12.9 million, or 22% of UK adults, used buy now pay later (BNPL) services at least once in 2025. In July 2026, the BNPL sector was brought under the regulation of the Financial Conduct Authority (FCA), giving customers stronger protections.
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." Gareth Oakley, chief executive at Cash Access UK, added: "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."
