
Of the 48 billion payments made last year, six billion were made using cash.
The number of those who mostly used notes and coins rose again in 2023, albeit slightly, from 1.7% to 2.6% of the UK.
The total number of payments still dropped to 12% from its 14% level in 2022, when the number of cash payments rose for the first time in a decade.
Overall, the number of payments made in the UK grew by 5% on the year before, according to the UK Finance Payment Markets Report.
However, paying with a debit card remained the most common method, representing just over half (51%) of all UK transactions. This is the case for every age group, despite the surge in popularity of ‘Faster Payments’ and contactless methods.

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UK Finance noted that “the trend from cash to card” continued, as did lower-value spending in retailers.
While the more traditional card use remained the most common practice for spenders, the increase in more modern methods also surged.
Customers’ tendencies to go contactless continued to grow, as well over a third (38%) of all payments made in the UK were done by tapping a debit card or smartphone.
Indeed, contactless payments overtook direct debits as the third-most popular payment method, with 18 billion transactions going through in the year, a rise of 7% from 2022.
Two-fifths of adults in the UK lived a largely cashless life during 2023, but a separate study found that half of the UK would still find a cashless society problematic.
This is pertinent for the three million people who do not have a smartphone or who do not want to risk being scammed with their card use.
Meanwhile, remote banking, which factors in online, mobile and telephone banking usage, was used by almost nine in 10 (87%) of adults at some point.
People veered away from online banking from their laptop or computer, which dropped to 62% from 65% as more tech-savvy customers opted for their mobile banking alternative, for which usage rose by 7% to 60%.
Looking ahead to the next 10 years, the diminishing use of cash is expected to ease somewhat. In 2033, UK Finance believes cash payments will account for around 6% of all payments made by spenders.
‘Contactless use doesn’t mean cashless society’
Adrian Buckle, head of research at UK Finance, said: “There is a huge amount of choice available to consumers in terms of how they make payments, but we can definitely see the continued popularity of debit cards and contactless. This has been driven both by consumer demand as well as new technologies, which help to increase acceptance levels, particularly among small and mobile businesses.
“Mobile contactless payments are growing fast and one-third of adults are now making these at least once a month, with scope for usage to increase further.”
However, following a landmark set of rules introduced by the Financial Conduct Authority (FCA), where banks and building societies will need to “plug significant gaps” when providing cash services to the local area, Buckle says the fate of cash is not a foregone conclusion.
Buckle added: “This doesn’t mean we are on our way to becoming a cashless society. Cash is still the second-most frequently used method of payment in the UK, although on the whole we are using it less and more people are leading largely cashless lives.
“Over the next decade, we forecast that the long-run trend of a decline in cash use and growth of certain other payment methods such as cards and Faster Payments will continue. We also expect to see further developments in the payments landscape that improve the customer experience.”