Consumers are increasingly using mobile phones for payments, with new data showing that two-thirds of UK adults were registered with at least one mobile payment service last year. This trend is highlighted in an annual report by banking trade body UK Finance, which notes a significant jump in phone payment use since Apple Pay launched a decade ago.
Nine in 10 mobile wallet users have their debit card set as their default payment method, indicating phones are commonly used for everyday transactions. While younger consumers, aged 16 to 34, show particularly high adoption with over 80% making regular mobile payments, older age groups are also increasing their use.
Despite the rise of digital payments, the decline in cash use is slowing. Notes and coins accounted for 8% of all payments in 2025, a total of 3.9 billion transactions. UK Finance forecasts this will halve to 4% of all payments, or two billion transactions, by 2035. The report suggests that cash will remain a valued payment option for some, rather than the UK becoming a cash-free society.
Debit cards were the predominant payment method last year, making up 54% of all payments. Contactless payments constituted 39% of transactions. Cheques, which were once slated for phasing out, now account for only 0.2% of payments.