Debit cards were the most used payment method in 2021, accounting for 48% of all payments, according to data published by UK Finance.
UK Finance’s latest Payment Markets Report shows the number of cash payments fell by 1.7% in 2021, although it remained the second-most-commonly-used payment method, used for 15% of all payments in the UK.
A total of 40.4 billion payments were made by consumers and businesses in the UK during 2021, which represented a return to pre-pandemic levels.
The number of debit card and credit card payments, which declined in 2020, rose again in 2021 to 22.9 billion payments – 57% of all payments in the UK were made using cards. Debit cards remained the most common payment method, growing by over 23% to reach a total of 19.5 billion payments.
The research shows contactless payments continue to grow in popularity. Almost a third of all payments in the UK were made via contactless methods in 2021, up 36% compared with 2020.
The number of cash payments decreased by 1.7% to six billion, although it remained the second-most-commonly-used payment method, accounting for 15% of all payments made in the UK last year.
During 2021 there were 23.1 million consumers who used cash only once a month or not at all, a significant increase from 13.7 million consumers the previous year. At the same time, there were 1.1 million consumers who mainly used cash when doing their day-to-day shopping.
Adrian Buckle, Head of Research at UK Finance, said: “In 2021 we saw the total number of payments return to pre-pandemic levels and a return towards the long-run trends in payment method usage. Contactless continued to be popular, accounting for almost a third of all payments. Cash usage fell slightly, although remained the second-most-commonly-used payment method.
“These are trends we expect to continue over the next decade, alongside a continued decline in cheque use, and an increase in the number of people using remote banking.”
