According to figures from a banking trade body, debit card transactions have overtaken cash use for the first ever time.
A report by UK Finance found that UK consumers used their debit cards 13.2 billion times last year, which is an increase of 14 percent from 2016. In contrast, cash transactions fell by 15 percent to 13.1 billion transactions in the same period.
“Clearly the way we shop and pay for services is changing but for millions of people in the UK cash still plays an essential role in their everyday lives,” said Gareth Shaw of the consumer group Which?
“With bank branch closures on the rise and the UK’s free-to-use ATM network under threat, it’s vital these people are still able to access the cash they need,” he added.
The use of contactless transactions, which were first introduced a decade ago, has doubled 5.6 billion. The use of contactless payments is most popular among those aged between 25 and 34.
Stephen Jones, chief executive of UK Finance, has said that while debit card use may have overtaken cash transactions at a faster pace than expected, notes and coins still have an important role to play.
“The choice of payment options available in the UK is allowing people to choose to pay the way that best suits them,” he said.
“But we are far from becoming a cash-free society and despite the UK transforming to an economy where cash is less important than it once was, it will remain a payment method that continues to be valued and preferred by many.”
“These trends are likely to shift further over the next decade. Developments such as Open Banking are expected to bring extensive changes to the payments landscape, something that will likely shape how we interact with our money in the coming years,” he added.