How the UK Is Going Cashless Faster Than Expected
In the UK, cash is no longer king. In some places, trying to pay with a tenner feels like turning up with a paper map in the age of Google. Contactless payments and mobile banking have become the go-to in everyday life.
There’s no law that says businesses have to accept cash, and many are choosing not to. One well-known restaurant chain with 135 locations across the UK recently announced they no longer accept cash. Customers can pay by card, Apple Pay, or Google Pay instead.
Big high street chains and restaurants like Gail’s, Itsu, and Zizzi are getting complaints from campaigners. They’ve stopped taking cash, even though lots of people still use notes and coins for day-to-day shopping.
But what’s behind this shift, and who’s most affected? Here’s a quick look at the factors involved and who’s feeling it most.
Why Is Cash Being Left Behind in the UK?
Pandemic as a Tipping Point
Even before the pandemic, people were using cash less and less. But COVID made the change happen faster. According to UK Finance, only 12% of all payments in the UK in 2023 were made with cash. That was a drop from 14% the year before.
When the pandemic hit, cash suddenly felt risky. During a time of masks, sanitiser, and social distancing, many people didn’t want to take the risk of handing over notes and coins. Shops started asking customers to “go contactless if you can,” and for many, it quickly became a habit. Even those who’d normally stick with cash — like older shoppers or people who preferred the feeling of control it gave — found themselves reaching for a card instead. Digital payments felt safer and easier. What started as a health precaution soon became the new normal.
Contactless Culture
What began during the pandemic has now become part of daily life. In the UK, tapping to pay isn’t just normal; it’s expected. Whether you’re grabbing a coffee, paying for the Tube, or shopping at the supermarket, most people reach for a card or phone. It’s quick, easy, and just feels natural now.
The UK actually has one of the highest contactless payment rates in Europe. Since most places set up for it, using cash feels a bit out of step.
Fintech Growth
Money apps like Monzo, Revolut, and Klarna help people manage their accounts, from spending to saving. For many, these platforms have become part of daily life — used for everything from online shopping and subscription services to entertainment and payments. Klarna, for example, lets people split payments into smaller parts, with no interest to pay upfront. It makes buying now and paying later feel easy.
You can order takeaway with a tap or split a dinner bill with friends in seconds. And the number of sites that accept Klarna and the growing number of Paysafecard casinos in the UK demonstrate just how much people value ease and convenience. It’s less about banking and more about how people prefer to live today.
Digital Wallets
Digital wallets like Apple Pay and Google Pay let you store your card on your phone or smartwatch and pay with just a tap. No need to carry a physical card. It works anywhere, and it’s how lots of people now choose to pay.
How Is Society Adapting to a Cashless UK?
Generational Split
Younger people, like Gen Z and millennials, have grown up with smartphones and contactless cards, so tapping or using apps feels natural to them. For older generations, though, cash is still familiar and comfortable. Also, some people prefer cash because it feels more secure or easier to control spending.
This means the move to cashless isn’t the same for everyone. Many younger people use digital payments without thinking twice, but some older people find it a bit hard or worrying. According to Age UK, one in three over-60s feels life has got harder because so much has moved online.
Regional Disparities
Big cities like London, Manchester, and Edinburgh often have better internet and more places that take cards or mobile payments. But in rural areas and small towns, it’s not always that easy. Some places have patchy mobile signals or poor broadband, which makes paying digitally harder. So cash still matters there.
This means where you live can make a big difference in how easy it is to go cashless. Some communities don’t have the same access to digital payment options, so cash remains important there.
Psychological Shift
When you hand over notes and coins, you see the money leave your hands. But when you pay with your phone or card, it can feel like the money just disappears.
For some people, especially those on tighter budgets, using cash helps them keep track of what they’re spending. As fewer people use cash, things like ATMs can start to disappear, which makes it even tougher for those who still rely on it.
The Future of Paying: Choice Matters
According to The Guardian, some shops say going cashless helps the planet. Handling notes and coins means making and moving money, which uses energy and materials. Paying digitally can cut down on this, so it’s better for the environment too.
Cash may be used less, but people still want to have a choice and feel in control. As digital payments grow, not everyone finds them easy or comfortable. The future of money should work for everyone, no matter how they like to pay. So it’s worth thinking about how we can keep options open for all. The future of money should work for everyone, not just the digitally confident.