UK Finance Reports Shift to Predominantly Digital Economy

UK Finance reports that the United Kingdom has become a predominantly digital economy, with cash payments falling to 3.9 billion transactions in 2025. This represents 8% of all payments, a decrease from 9% in 2024 and a sharp drop from 45% in 2015. Projections indicate cash will account for only 4% of all transactions by 2035.

Debit cards remain the primary payment method, accounting for 54% of all payments, while contactless payments grew to 39%. Digital adoption is particularly high among 16 to 34-year-olds, and 91% of UK adults now utilize online, mobile, or telephone banking. In a related regulatory shift, the Financial Conduct Authority brought the buy now pay later sector under its regulation in July 2026 to improve customer protections.

Despite the digital trend, industry leaders emphasize that cash remains essential for approximately 1.4 million adults, particularly lower-income populations who rely on it for budgeting. To prevent the exclusion of vulnerable groups, Cash Access UK is rolling out nearly 250 banking hubs to provide face-to-face services and alternatives for those without digital access.