Consumer reliance on cash has significantly declined across the UK, according to the latest survey by The Payments Association.
The survey highlights shifting attitudes toward payment methods, with only 13% of respondents expressing a preference for cash over cards, mobile wallets, or wearable devices.
Interestingly, while older respondents were more likely to use cash—16% among those over 55—this figure was mirrored by younger participants aged 18–24, possibly due to limited experience with purchasing goods and services.
In contrast, respondents aged 35–44 showed the lowest preference for cash at just 8%.
Geographically, cash use was highest in Northern Ireland (37%) and the northeast of England (36%), with notable disparities between socioeconomic groups.
People in lower social grades were more likely to use cash frequently, with 26% in the C2DE category using it regularly compared to 19% in the ABC1 category.
Tony Craddock, Director General of The Payments Association, remarked, “Most people prefer not to use cash when paying for things but they want cash to be preserved just in case. It’s a little like saying, ‘I prefer to listen through my ear pods but think we should keep Juke Boxes, just in case.’”
The case for keeping cash
Despite the decline in preference, cash remains an essential option for many. An overwhelming 88% of survey respondents believe it is important for cash to remain available, even if they rarely use it. Only 2% of participants viewed cash as entirely unnecessary.
Cash also continues to serve specific roles that digital alternatives cannot fully replicate. For some, it provides a way to budget, while others rely on cash for transactions with small vendors who do not accept digital payments.
Craddock explained, “Cash is a tool for those times when paying digitally isn’t possible. It will continue to be a useful tool even when digital currencies become mainstream, so I wouldn’t discount it just yet.”
The survey data shows that 82% of respondents used cash at least once in the last six months, and 22% reported using it more than once a week. However, only 6% claimed to never use cash at all, demonstrating its persistent relevance in specific contexts.
The role of digital currencies in payment evolution
As cash use declines, The Payments Association is advocating for investment in a Central Bank Digital Currency (CBDC) as the next step in the UK's payments evolution.
While 68% of respondents indicated they are unlikely to adopt a new digital payment method, historical trends suggest that initial resistance to change often gives way to widespread adoption.
Riccardo Tordera, Director of Policy and Government Relations, commented, “While cash usage remains relevant, we cannot dismiss the fact that 87% of people use other forms of payments in their everyday life.
Most people who use these other non-cash forms quickly adapted and see the overwhelming benefits. Few of them would have thought of adopting such forms before they were available.”
However, the report also cautions against positioning a CBDC as a direct replacement for cash. As Craddock observed, “The fact that cash is still being used despite more convenient alternatives being available means that for what cash is used for, it is irreplaceable.”
The findings underline the need for a balanced approach to the future of payments in the UK, ensuring that cash remains available for those who depend on it while embracing innovations like CBDCs to meet evolving consumer preferences.
As the payments landscape continues to shift, the debate around cash’s role in society remains both complex and necessary.
