Mobile payments on the rise but cash decline slows

In recent years, a growing number of UK adults are turning to their mobile phones for payments, according to an annual report from banking trade body UK Finance. With two-thirds of adults registered with at least one mobile payment service, the trend of using phones to make payments has accelerated since the launch of Apple Pay a decade ago. While cash use continues to decline, the pace of the decline is slowing, suggesting that notes and coins will remain a key payment method for many years to come.

Nine out of ten mobile wallet users have their debit card as their default payment method, with the rest opting to register their credit card. This shows that phones are being used for everyday payments, particularly by younger consumers. Nearly 80% of 16 to 34-year-olds make mobile payments regularly, compared to just 22% of those over 65. Adrian Buckle, UK Finance's head of research, noted that the UK is now a predominantly digital economy when it comes to making and receiving payments.

Debit cards, including those loaded onto phones, accounted for 54% of all payments in the UK in 2025, with contactless payments making up 39% of transactions. Cheques, once expected to be phased out by 2018, have dwindled to just 0.2% of payments, with 77 million written last year. Despite this shift, cash is expected to retain its relevance, with notes and coins expected to account for 8% of all payments in the UK in 2035.

While cash withdrawals are falling nationwide, millions still rely on it for budgeting and day-to-day transactions, especially those on lower incomes. UK Finance's Nick Quin emphasized that protecting access to cash remains crucial for those who continue to depend on it.