Around 1.4 million UK adults still mainly use cash for their day-to-day spending, according to UK Finance, even as more than nine in 10 (91%) adults used at least one form of online, mobile or telephone banking in 2025.
The proportion of adults using remote banking increased from 88% in 2024, the industry body said. The report stated: “Looking ahead to 2035, the UK payments market is expected to continue growing while becoming more digital.”
Cash use falling but not disappearing
Cash use fell last year and is expected to decrease further over the coming decade “but not disappear”, according to the report. Gareth Oakley, chief executive at Cash Access UK, said: “We know more people are comfortable and choosing to pay with contactless cards or with their smartphones.”
Around 19 million people use cash once a month or less frequently, UK Finance estimates. Oakley added: “As a result, cash use is falling. What’s vital to recognise is that there are millions of people who rely on cash and face-to-face services. Technology doesn’t always work for everyone, and for so many there isn’t an alternative to cash.”
Banking hubs rolling out across the country
“For those who rely on cash and for many more, who still need basic banking services, we are pleased to be rolling out banking hubs across the country, with almost 250 open already,” Oakley said.
By 2035, cash use is expected to account for just 4% of payments made in the UK, with around two billion transactions, the report said. It added: “While cash payments decline, cash machines continue to play dominant role in access to cash as 49.3 million people used one in 2025.”
Digital payments dominate but cash remains vital
The report said: “Consumers increasingly use mobile and online banking for bill payments, transfers and person-to-person transfers, while businesses continue to rely heavily on Faster Payments for account-to-account transfers.”
Adrian Buckle, head of research at UK Finance, said: “UK Finance’s latest data show that the UK is now a predominantly digital economy when it comes to making and receiving payments. Faster Payments continue to grow strongly, while cards remain central to everyday spending. The trends of the past decade are becoming increasingly established.”
“Cash usage is declining, albeit more gradually, and growth across many payment methods is stabilising as the market matures. The industry is now entering a new phase of innovation. New payment technologies have the potential to reshape how people and businesses move money, and continued close engagement across government, regulators and industry will be essential to unlock that potential,” Buckle added.
John Howells, chief executive of ATM and cash access network Link, said: “The way we pay for things is changing at pace. While cash use continues to decline in every part of the UK, it remains vital for millions of people.”
“Link will continue working to ensure people can access cash for free on the high street. As policymakers work on how payment systems are designed in the future, it’s clear that those systems will still need to work with cash,” Howells said.
