Half of UK adults used cellular contactless funds recurrently final yr, whereas money accounted for lower than 10% of funds for the primary time, based on a banking and finance trade physique.
Money made up 9% of funds in 2024, down from 23% in 2019 and 48% in 2014, UK Finance mentioned.
Its report mentioned that extra persons are utilizing their telephones, watches or different cellular gadgets to handle cash and make purchases, with 57% of adults being registered to make use of cellular wallets final yr, up from 42% in 2023.
The report mentioned: “By way of the entire inhabitants, 50% had been utilizing cellular contactless funds no less than as soon as a month in 2024. It’s the first time that common cellular fee customers reached half of the grownup inhabitants within the UK.”
Youthful persons are main the best way on this adoption, however there’s already important use amongst older age teams, the UK Fee Markets 2025 report mentioned.
It mentioned: “Much like most new technological improvements, UK Finance market analysis discovered that youthful persons are extra seemingly than older individuals to make use of cellular fee providers resembling Apple Pay or Google Pay.
“We anticipate that, over the subsequent decade, older age teams will begin to meet up with youthful cohorts when it comes to adoption of cellular funds, a sample that’s recurrently seen following the introduction of recent fee providers and applied sciences.
“This sample was noticed with contactless card funds and we’re prone to see it with cellular funds too.”
The full variety of funds made within the UK final yr was 48.6 billion, up by 1.5% in contrast with 2023.
Customers had been chargeable for 84% of funds final yr, whereas companies, authorities and not-for-profit organisations accounted for 16% – together with wage, pension and profit funds to individuals and funds between organisations.
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UK Finance mentioned that, in the same method to how contactless funds have changed some low-value funds in bodily money, contactless cellular funds look like changing contactless funds initiated utilizing aphysical card.
Almost a 3rd (30%) of UK adults had been dwelling “largely cashless lives” in 2024, the report mentioned.
Round 16.9 million adults used money as soon as a month or much less final yr, whereas 1.2 million primarily used money, UK Finance mentioned.
Almost a fifth (19%) of individuals aged 65-plus not often used money (utilizing it as soon as a month or much less incessantly), in contrast with 40% of 16 to 24-year-olds.
The report mentioned that whereas age is “probably the most correct predictor” of money use, knowledge suggests individuals on excessive incomes usually tend to not often use money than individuals on decrease incomes.
It added: “Amongst those that had a yearly earnings of £65,000 or extra, 46% not often used money in 2024, whereas amongst those that earn £20,000 or much less a yr, the share of uncommon money customers was 22%.
“There’s additionally a gender hole in money use as ladies (33%) usually tend to be uncommon money customers than males (26%).”
Again in 2023, 1.5 million individuals primarily used money for his or her on a regular basis spending, as households finely balanced their budgets in the course of the cost-of-living squeeze.
The report mentioned: “Money, which till 2023 was the second most used fee technique within the UK, has now fallen beneath the extent of direct debit, sooner funds, and bank cards.”
Bodily and cellular playing cards had been probably the most used method to pay within the UK final yr, making up 64% of transactions.
Round 62% of debit card funds and 55% of credit score and cost card funds had been contactless.
Purchase now pay later (BNPL) providers, which permit buyers to separate funds, noticed notable progress final yr, with one in 4 (25%) UK adults utilizing them, up from 14% the yr earlier than, the report mentioned.
Vogue led the best way, making up 46% of BNPL transactions, with a mean spend of £114.
Cellular banking, by way of a banking app for instance, grew to become the most typical method to entry accounts in 2024, utilized by 75% of UK adults. It overtook desktop banking for the primary time, UK Finance mentioned.
Waiting for 2034, playing cards are anticipated to stay the most well-liked method to pay, accounting for round 67% funds, UK Finance mentioned.
Cellular pockets use is anticipated to develop, with extra individuals, together with older age teams, registering and utilizing them extra typically for on a regular basis funds.
New providers resembling “pay by financial institution”, which permit individuals to pay cash to a agency straight from their present accounts, as a substitute of utilizing different strategies resembling playing cards, may additionally change into extra widespread, UK Finance mentioned.
In the meantime, “conventional” fee strategies resembling money and cheques are anticipated to say no additional, with money projected to fall to 4% of funds in 2034 from 9% final yr and cheques to only 0.1% (from 0.2%).
The speed of decline in money use has slowed as use turns into concentrated amongst individuals who have a robust choice for money and in conditions the place money has benefits over different fee strategies, the report mentioned.
Over the subsequent 10 years, the decline in money use is anticipated to be much less speedy than it has been over the previous decade.
The report mentioned: “Reasonably than the UK changing into a cash-free society over the subsequent decade, the UK will transition to an economic system the place money is much less vital than it as soon as was however stays extensively valued, and nonetheless most well-liked by some.”
Adrian Buckle, head of analysis at UK Finance, mentioned: “2024 was a yr of firsts, all pointing to the rising shift in the direction of digital funds – greater than half of UK adults used cellular wallets, cellular banking overtook desktop as the primary method individuals entry their accounts, and money fell beneath 10% of all funds.
“These adjustments weren’t simply pushed by youthful customers. We noticed progress in cellular wallets and purchase now pay later throughout older age teams, too, highlighting how digital funds have gotten extra mainstream throughout the board.
“Motion from regulators to enhance competitors, together with the rollout of the Nationwide Funds Imaginative and prescient, aimed toward fostering a brand new period of innovation in funds, helps to create the circumstances for additional change in theyears forward.”
Adrian Roberts, deputy chief government at money entry and ATM community Hyperlink, mentioned: “Right this moment’s report enhances latest analysis from Hyperlink that discovered that digital funds are the default alternative throughout society, not simply the younger.
“Whereas the variety of individuals counting on money continues to fall, we all know that those that do are sometimes on decrease incomes or the extra weak. We should not sleepwalk right into a digital-only society earlier than everybody is prepared.
“There’s additionally a query of resilience for a digital-only funds system. What occurs within the case of widespread energy outage? Digital fee programs have to be stronger and extra resilient, and the work led by the Financial institution of England on the Nationwide Funds Imaginative and prescient is a wonderful step in that path.”
Gareth Oakley, chief government officer of Money Entry UK, mentioned: “The success of the banking hubs we’ve established up to now clearly demonstrates the continued want for entry to money and in-person banking providers – there are on common 150 buyer transactions on daily basis in our banking hubs.
“And by the tip of this yr, we anticipate to assist a million buyer transactions each month via the hubs and our wider money providers.”
Listed here are the proportions of every age group registered to make use of cellular funds in 2024, based on UK Finance:
16 to 24, 88%
25 to 34, 78%
35 to 44, 65%
45 to 54, 58%
55 to 64, 47%
65-plus, 25%