The UK Payments Market report, released in 2026 and covering the previous year’s data, shows that debit cards – including those loaded onto mobile phones – were the dominant way to pay in 2025. They accounted for 54% of all transactions, according to a BBC Business article that quoted the report.
How the payment mix broke down in 2025
Alongside the debit‑card share, contactless payments – which are a subset of card transactions – made up 39% of all payments. Cash, in the form of notes and coins, was used in 3.9 billion transactions, representing just 8% of the total payment volume.
| Payment method | Share of transactions |
|---|---|
| Debit cards (incl. mobile‑loaded) | 54 % |
| Contactless (card‑based) | 39 % |
| Cash (notes & coins) | 8 % |
| Source: BBC Business – “Mobile payments on the rise but cash decline slows”, quoting the UK Payments Market report (2025 data) | |
These figures illustrate a payment landscape that is increasingly digital. While cash still plays a role – 3.9 billion transactions is a sizable number – its share has continued to shrink.
Mobile wallets boost the debit‑card surge
The BBC story adds that two‑thirds of adults in the UK were registered with at least one mobile‑payment service in 2025. The same article notes that the use of a phone to pay has jumped in recent years, a decade after Apple Pay launched in the country. By counting mobile‑loaded cards as part of the debit‑card category, the report captures the growing importance of smartphones in everyday purchases.
For consumers, the shift means fewer trips to the ATM and less need to carry cash. For retailers, it translates into faster checkout times and lower cash‑handling costs. The data also suggests that contactless technology – which can be used on both physical cards and mobile wallets – is now a mainstream method, covering nearly four‑in‑ten payments.
What the numbers mean for policymakers and the banking sector
Policymakers have been debating the future of cash in a largely digital economy. The 8% cash share confirms that cash is still used, but the rate of decline appears to be slowing, according to the BBC article. The report warns that cash will remain an important option for many people a decade from now, implying that a sudden removal of cash infrastructure could disadvantage certain groups.
Banking trade body UK Finance, which compiled the data, is a relatively new association – founded on 1 July 2017 – that represents the interests of the UK banking sector. While the packet does not list a chief executive or employee count for UK Finance, the organisation’s role as the source of the payments data gives it credibility among regulators and industry observers.
Comparisons with previous years and the road ahead
The report is released annually, and the 2025 figures follow a pattern of steady growth in card‑based payments. Although the packet does not provide the 2024 numbers, the fact that debit cards now hold a 54% share suggests they have continued to outpace cash, which fell to 8% in the same year.
What remains unknown is the exact trajectory of cash use beyond 2025. The BBC article notes that the decline is slowing, but it does not give a quantitative forecast. Likewise, the report does not break down the debit‑card share by age group or region, leaving a gap in understanding which demographics are moving most quickly to digital payments.
Implications for everyday Canadians
While the data are UK‑specific, the trend mirrors what Canadian consumers have been experiencing: a rise in contactless and mobile payments and a gradual reduction in cash usage. Canadians watching the UK figures can anticipate similar shifts at home, especially as banks and retailers invest in faster, card‑less checkout solutions.
For Canadians who still rely on cash – such as seniors, low‑income households, or people in rural areas – the UK experience underscores the importance of ensuring that cash remains available and that digital alternatives are accessible and affordable.
What we still need to know
- The exact cash share in the most recent year after 2025, once the next UK Payments Market report is published.
- Breakdowns of payment method usage by age, income and geography.
- The identity of the current chief executive of UK Finance and the size of its staff, which the packet does not confirm.
Until those details emerge, the 2025 snapshot offers a clear view of a payment system that is now firmly digital‑first, with debit cards leading the way and cash holding a modest but still significant slice of the pie.