UK Goes Cashless: Mobile Payments Surge, Cash Drops Below 10%
The UK witnessed a significant shift in payment methods last year, with cash usage dropping below 10% for the first time. This decline, coupled with a surge in mobile contactless payments, has reshaped the nation's payment landscape.
In 2023, a total of 48.6 billion payments were made in the UK, a 1.5% increase from the previous year. This growth was largely driven by mobile contactless payments, with half of British adults now using them regularly. The rise of mobile wallets has also been notable, with around three in five adults registered to use them, up from two in five in 2023.
While younger people are at the forefront of this shift, older age groups are also adopting mobile payments. This trend is expected to continue, with cash projected to decline further, making up just 4% of payments by 2034. Last year, cash accounted for 9% of all payments, marking the first time it fell below direct debits, faster payments, and credit cards. Nearly a third of adults now live 'largely cashless lives', using cash once a month or less.
The UK's payment ecosystem is evolving rapidly, with mobile contactless payments and mobile wallets leading the charge. As cash usage continues to decline, the country inches closer to a cashless future, with significant implications for businesses, consumers, and the broader economy.
