UK Finance has revealed that cash use in the UK fell below ten percent for the first time last year, with the Payment Markets Report 2024 stating that of the 48.6 billion payments made during the period, 64 percent were made with debit and credit cards.

The latest Payment Markets Report from UK Finance has revealed that cash usage dropped below ten percent for the first time during 2024, with the number of people relying on cash for everyday spending declining from 1.5 million to 1.2 million.

With both physical and on-device card payments accounting for 64 percent of the 26.1 billion payments made last year, the study predicts that cash usage will decline further to four percent of payments during 2025.

“2024 was a year of firsts, all pointing to the growing shift towards digital payments,” said UK Finance head of research Adrian Buckle. “More than half of UK adults used mobile wallets, mobile banking overtook desktop as the main way people access their accounts, and cash fell below 10 percent of all payments. These changes weren’t just driven by younger consumers.”

“We saw growth in mobile wallets and Buy Now Pay Later across older age groups too, highlighting how digital payments are becoming more mainstream across the board. Action from regulators to improve competition, along with the rollout of the National Payments Vision, aimed at fostering a new era of innovation in payments, is helping to create the conditions for further change in the years ahead.”

The report states that more people are using phones, watches or other mobile devices to complete payments, with 57 percent using wallets last year, up from 42 percent in 2023.  

“Of those who used mobile payments, half used them monthly, and 44 percent weekly or more often. While younger people still lead the way in terms of adoption – 88 percent of 16 to 24-year-olds – among those aged 65 and over, registration rose from 14 percent in 2023 to 25 percent in 2024.”

“As digital options become more widespread, cash use continued its long-term decline in 2024, falling to 4.4 billion payments compared with six billion in 2023.”

Less cash

UK Finance report stated… “As digital options become more widespread, cash use continued its long-term decline in 2024, falling to 4.4 billion payments compared with six billion in 2023…