Mobile payments are rapidly becoming the preferred method for transactions among UK consumers, as highlighted in a recent report by UK Finance. The study indicates a significant increase in the adoption of digital wallets, with two-thirds of UK adults registered for at least one mobile payment service in the past year.
The trend towards mobile payments has been building since Apple Pay was introduced in the UK ten years ago. The convenience of storing payment information on smartphones and watches, coupled with contactless features verified by facial recognition or fingerprint, is driving this shift. Almost 90% of mobile wallet users have defaulted to debit cards on their devices, and the remaining rely on credit cards for transactions. The usage is notably higher among younger generations, with over 80% of 16 to 34-year-olds participating regularly, compared to just 22% of those over 65.
Persisting Use of Cash
The UK Payments Market report also highlights the continued relevance of cash, despite the digital payment surge. Debit cards, especially those integrated into mobile platforms, accounted for 54% of payments in 2025, and contactless transactions made up 39% of the total payments.
Though the prevalence of cheques has dwindled to only 0.2% of transactions, cash still plays a role, used in 3.9 billion transactions, or 8% of all payments, last year. UK Finance predicts this number will decrease to 4% by 2035, equating to two billion transactions. Nonetheless, a segment of the population persists in valuing cash for their financial dealings.
While many individuals have transitioned to digital payments, the report underscores that cash will maintain its presence in the UK economy. “Rather than the UK becoming a cash-free society over the next decade, the UK will transition to an economy where cash is less important than it once was but remains widely valued and still preferred by some,” the report explains.
Despite declining cash withdrawals nationwide, Nick Quin, representing Link, the UK’s ATM network overseer, stresses the importance of sustaining cash access, particularly for individuals on lower incomes who often rely on physical currency for budgeting purposes.
Reporting based on coverage first published by bbc.co.uk.