Most used in-store (POS) payment methods in the UK 2017-2023, with 2027 forecast

Cash use in UK transactions declined for the successive year, while the market share of debit and credit cards increased again. Debit cards were the most popular method in POS transactions in the United Kingdom in 2022, accounting for 47 percent of transactions. This was far higher than transactions with banknotes or coins, accounting for 10 percent of brick-and-mortar payments in 2022. The UK's share of cash was one of the lowest worldwide, according to both a global survey on cash use across 41 countries and domestic research involving payment diaries across multiple countries.

Cash on a decline in the UK

Calculations using cash withdrawals and payment transactions indicate that the share of cash in the UK declined the fastest during the coronavirus pandemic. Numbers are estimates as no data exists on non-digital transactions in retail payments. Payment diaries are the only way central banks can map out consumers' use of cash in shops. The numbers provided may still not be accurate, as not all payment data required to make such estimates is readily available.

Do digital payments in the UK grow faster than in other countries?

The United Kingdom's preference for digital payments over cash is more pronounced than for most of Europe. Europe, however, is not the main region in the world when it comes to digital payments. The number of digital payments in Asia-Pacific will triple between 2022 and 2026, a substantially higher growth rate than in North America and Europe combined. Latin America will see the highest increase in digital payment transaction value between 2021 and 2026, with North America seeing the least.