Cash accounted for just 8% of all UK payments in 2025, according to new figures from banking and finance trade body UK Finance. That is down from 9% a year earlier and represents a dramatic change compared with 2015, when almost half of payments were made using cash.
The decline is expected to continue. By 2035, UK Finance predicts cash will account for just four per cent of payments, although it is not expected to disappear altogether.
Cash still vital for millions
Around 1.4 million UK adults still mainly use cash for their everyday spending, making continued access particularly important for those who are not comfortable relying entirely on cards or smartphones.
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.”
Digital banking on the rise
The number of cash payments dropped from 4.3 billion in 2024 to 3.9 billion last year. UK Finance expects that figure to fall to around two billion by 2035.
Meanwhile, digital banking is becoming increasingly commonplace. Some 91% of UK adults used at least one form of online, mobile or telephone banking during 2025, up from 88% the year before.
Three-quarters of adults now use mobile banking, while 65% are registered for at least one mobile payment service. There is a noticeable difference between age groups, however. Around 89% of people aged 25 to 34 are registered for mobile payments compared with just 29% of over-65s.
Face-to-face services continue
Gareth Oakley, chief executive at Cash Access UK, warned that the shift towards digital payments will not work for everybody.
He 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.”
Despite the continuing decline, cash machines remain important, with 49.3 million people using an ATM during 2025. Cash Access UK also said almost 250 banking hubs are now open across the country as efforts continue to provide face-to-face banking services while traditional payment habits change.
