Britain edges closer to a cashless society as debit cards dominate payments in 2024

Britain is making rapid strides towards a cashless society, with the use of coins and banknotes reaching a historic low last year. According to new data from UK Finance, just nine per cent of all payments in 2024 were made using physical cash. This marks a notable decline from twelve per cent in 2023 and a stark contrast to the fifty eight per cent recorded as recently as 2009.

The shift away from cash accelerated significantly after the Covid pandemic, as contactless and digital payment methods soared in popularity. Debit cards retained their position as the most popular choice, accounting for fifty four per cent of all transactions in 2024. In comparison, cash payments fell to 4.4 billion transactions nationwide, losing ground to faster payments, credit cards, charge cards and direct debits.

Digital adoption continues to reshape consumer behaviour across the UK. Half of adults now use mobile contactless payments at least once monthly, up from thirty four per cent in 2023. An overwhelming fifty seven per cent of the population have signed up for at least one mobile payment service, while more people accessed bank accounts through mobile devices than laptops or desktop computers for the first time.

Despite this digital surge, concerns remain for those at risk of being left behind. Cash remains the second most-used payment method among people aged over sixty five and is used most often by those on lower incomes. The lowest socio-economic group relied on cash for fourteen per cent of payments, compared to just six per cent among the wealthiest. Around 1.2 million people continue to use cash for their day-to-day spending.

Widespread adoption of digital payment methods has contributed to the reduction in bank branch numbers across the UK. Figures from the Office for National Statistics confirm there were 6,870 branches in 2024, down steeply from over 10,400 in 2019. Concerns about access have prompted the Financial Conduct Authority to introduce new rules protecting community cash services, addressing the risk of leaving vulnerable individuals without necessary facilities.

Buy now pay later options have also gained traction, now used by a quarter of adults compared with fourteen per cent the previous year. Looking ahead, UK Finance predicts the downward trend will persist, with cash expected to account for just four per cent of all transactions by 2034. As fewer Britons carry wallets and digital convenience dominates, the future of payments appears increasingly shaped by technology and changing attitudes towards money management.