The pace of the decline of cash use in Britain slowed in 2025, new data from UK Finance shows, but is on course to dwindle further in the next ten years.

Many shoppers have been left infuriated after a growing number of shops and restaurants have switched to cashless operations in recent years.

Banks and building societies have also been closing large numbers of branches, citing shifting consumer habits and the dwindling use of cash, sparking concerns about people who are vulnerable or reliant on cash being left out. 

Last year cash usage continued to fall, dropping to 3.9billion payments in 2025, down from 4.3billion the previous year. 

Cash represented 8 per cent of all payments, compared with 9 per cent in 2024 and 45 per cent in 2015, UK Finance said. 

But despite the long‑term decline, the move away from cash eased last year, 'reflecting the fact that cash remains important for many people', according to the findings. 

Around 1.4million people, 3 per cent of adults in Britain, mainly use cash for their day-to-day spending, UK Finance said. 

It added: 'Maintaining appropriate access to cash therefore remains an important priority, ensuring that consumers retain choice and that no one is left behind as payment preferences continue to evolve.'

Around 19million people, a third of adults in Britain, said they used cash once a month or less frequently. 

John Howells, chief executive of 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.'

Adrian Buckle, head of research at UK Finance, said: 'Cash usage is declining, albeit more gradually, and growth across many payment methods is stabilising as the market matures.'

More than nine in ten adults in Britain were using at least one form of online, mobile or telephone banking in 2025, UK Finance said. 

Debit cards remained Britain's most‑used payment method last year, accounting for more than half of all payments.  

Contactless payments, whether made using a physical card or a mobile device, jumped 2 per cent to 19.2billion, representing 39 per cent of all payments in 2025. 

A decade ago, contactless made up just 3 per cent of transactions. 

Mobile banking remained the preferred option, used by 75 per cent of adults.

Mobile wallet usage continued to become more widespread since the launch of mobile payments in 2015. 

Nearly two-thirds of adults in Britain were registered for at least one mobile payment service in 2025, up from 57 per cent in 2024, UK Finance said.

Almost 90 per cent of mobile wallet users were aged between 25 and 34, against 29 per cent of over 65s.

The report said: 'Looking ahead to 2035, the UK payments market is expected to continue growing while becoming more digital.'

Cash use is expected to fall further over the coming decade 'but not disappear', UK Finance said, to make up 4 per cent of payments by 2035.