Consumers in the UK appear to be relying less and less on cash and traditional methods. In fact, only 11 per cent of people still favour paying in cash, highlighting the shift towards more streamlined and digital alternatives, according to a new survey conducted by payment solution provider SumUp.
Digital payment methods continue to grow in popularity in the UK, with the region experiencing a continuing shift towards cashless transactions.
To discover how payment preferences are evolving, SumUp, conducted a nationwide survey, gathering insights from UK consumers about their payment habits. It found that 62 per cent of people prefer to pay with debit or credit cards, highlighting the continued dominance of traditional card-based transactions.
In addition, 18 per cent of consumers find mobile payment options, such as Apple Pay and Google Pay, to be the most convenient choice, reflecting the growing adoption of digital wallets. Among younger generations, mobile payments are popular, with 36 per cent of those aged between 18 and 24 adopting mobile payment methods, alongside 28 per cent of people aged between 25 and 34.
Interestingly, this shift towards mobile banking has also resulted in some forgetfulness around traditional debit card details. Twenty-three per cent of 18 to 24-year-olds have forgotten their debit card PIN, while 22 per cent of those aged 25 to 34 report the same issue. This highlights how the increasing reliance on mobile payments is slowly making debit cards feel less essential, particularly for younger consumers.
Other emerging payment methods include Buy Now, Pay Later services (four per cent), alongside more innovative methods such as cryptocurrency and wearable technology like smartwatches and payment rings (one per cent).
Changing payment preferences
Corin Camenisch, marketing and growth lead at SumUp
Corin Camenisch, marketing and growth lead at SumUp, also commented on the report: “While debit and credit cards continue to dominate as the preferred payment method, it’s clear that cash is slowly declining in use, particularly among younger generations. That said, cash still holds its place for many. Looking ahead, we can anticipate a rise in innovative payment methods like digital wallets, especially as younger consumers increasingly embrace the convenience and flexibility they offer.”
Fifty-one per cent of people said that they have changed the way they pay for goods and services over the past year. Among them, 22 per cent have embraced digital payment methods, with the increased convenience of this method being a key factor in their decision.
Additionally, 15 per cent of consumers have reduced their use of cash, largely due to merchants and transportation services adopting tap-to-pay, making physical cash less necessary. Meanwhile, nine per cent have turned to Buy Now, Pay Later services, appreciating the flexibility of spreading payments over time and taking advantage of special offers from retailers through these services.
Furthermore, four per cent have started using subscription-based services for regular purchases such as groceries, pet food, or personal hygiene products, enjoying the ease of scheduled deliveries and fixed payment plans. These shifts all reflect the growing demands for convenience and flexibility in how consumers make purchases.
Are UK consumers still using cash?
Twenty-five per cent of people express a dislike for paying with cash, and for many, businesses that don’t offer digital payment options can be a source of frustration. In fact, 19 per cent find it inconvenient when a business doesn’t accept digital payments or cards, while 11 per cent actively avoid such businesses, expecting all establishments to provide digital payment options as a standard.
Despite eight per cent of consumers preferring to shop at cash-only businesses, 75 per cent still consider cash as an option in certain situations. For 26 per cent, using cash provides a greater sense of control over their spending, whilst 22 per cent find it quicker and more convenient. Additionally, 17 per cent of consumers simply prefer the tactile nature of cash transactions.
Furthermore, 22 per cent of people only use cash when they receive it as a gift, such as during Christmas or birthdays, highlighting how certain occasions still drive cash usage.
Other reasons for continued cash usage include the desire to avoid digital payment fees or charges (12 per cent), the lack of access to digital payment methods (12 per cent), and concerns over the security of digital transactions, of which eight per cent of consumers expressed a mistrust.
Considering AI-powered payments
SumUp also revealed that 29 per cent of UK consumers would trust AI to make small, automated payments on their behalf – highlighting a growing openness to AI-driven financial tools. Among those respondents, 11 per cent said they would be comfortable allowing AI to handle all types of payments, while 12 per cent would trust it to manage recurring expenses such as bills and subscriptions.
Meanwhile, seven per cent said they’d be happy for AI to take care of everyday purchases such as groceries, transport, and coffee – suggesting convenience is a key driver in evolving payment preferences.
While 71 per cent of UK consumers said they wouldn’t be comfortable with AI making payments on their behalf, the data suggests that the hesitancy stems from a desire to maintain control over their finances. Among those respondents, 33 per cent said they would prefer to review transactions before they are processed, whilst 38 per cent expressed outright distrust over AI making financial decisions on their behalf.
Capital focus
With London’s well-established position as a consumer behaviour trendsetter, SumUp looked to see how Londoners are approaching new technologies and payment methods.
Similarly to Brits overall, 61 per cent of Londoners prefer paying with debit or with credit cards. However, a slightly larger proportion of 20 per cent opt for mobile payment methods, and a lower amount of people prefer cash (eight per cent).
Two-thirds of Londoners (66 per cent) said that they have changed the way they make payments over the past year, with 28 per cent switching to more digital payments, including apps, contactless, or digital wallets, alongside 14 per cent who have made the switch to BNPL services. In addition, 14 per cent said that they have started to use cash less frequently due to the increase in merchants in London offering digital payment options.
Whilst 29 per cent of Londoners said that they don’t mind cash and still carry it for situations where digital payments aren’t an option, a growing number of people in the city are expressing that digital payments are more favourable. Although 26 per cent of Londoners said that they think businesses should adapt to more modern payment methods, they understand why some may not due to certain charges.
Furthermore, 19 per cent said that they find it inconvenient and prefer to purchase from a business that offers digital payments, and for 15 per cent of Londoners, they avoid cash-only businesses whenever possible and expect all businesses to offer digital payments.
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