UK cash payments projected to fall to 4% by 2035

According to the 2025 Payment Markets Report by UK Finance, cash usage in the United Kingdom is projected to decline to just 4% of all payments by 2035. In 2025, cash accounted for 8% of payments, totaling 3.9 billion transactions, a decrease from 4.3 billion the previous year.

Digital banking adoption continues to rise, with 91% of UK adults using online, mobile, or telephone banking in 2025. Mobile banking is the most popular method, utilized by 75% of adults. Additionally, 65% of adults are registered for at least one mobile payment service, up from 57% in 2024. While mobile contactless is increasingly replacing physical cards, adoption rates vary significantly by age; 89% of 25 to 34-year-olds are registered compared to 29% of those over 65.

Remote banking payments, including Faster Payments, reached 6.2 billion in 2025, making them the second most-used payment method. This sector is expected to grow to 8.4 billion payments over the next decade. Despite the decline in transactions, cash machines remain a primary access point, used by 49.3 million people in 2025.