The UK payment markets are entering a new phase of their evolution. Following several years of rapid change, the latest data suggests that many of the trends that have shaped the way consumers pay are beginning to mature. This provides an important opportunity to reflect on how consumers are using today’s payment methods whilst looking ahead to the next wave of transformation and innovation that will unlock new growth opportunities.

Within almost 50 billion payments made during 2025, debit cards remained the UK’s most frequently used payment method. However, after years of sustained growth, debit card use appears to be reaching a natural plateau as consumer adoption matures. Contactless payments continue to be an integral part of everyday life, although growth has also begun to moderate as usage approaches saturation across much of the population. At the same time, account-to-account payments, such as Faster Payments, continue to grow strongly, demonstrating the increasing importance of choice and innovation to support the UK’s economy.

Although cash remains important, its long-term decline has continued, the pace of change has slowed, suggesting that many consumers who prefer to use cash continue to value it for certain types of transactions. Maintaining appropriate access to cash therefore remains an important priority, ensuring that consumers retain choice and that no one is left behind as payment preferences continue to evolve.

Alongside these established trends, the payments industry is preparing for its next period of transformation with significant investment underway to modernise the UK’s retail payments infrastructure. New technologies and payment models, including digital wallets and digital forms of money such as tokenised deposits and regulated stablecoins, have the potential to expand consumer choice and enable new payment experiences. As these capabilities develop, they are likely to influence not only how consumers pay, but also will drive adoption and renew growth in payments going forward.

Continued close engagement between government, regulators and industry will be essential to unlock pace and change, and provide the clarity and certainty needed to unlock investment that will ensure the UK retains its position at the forefront of payments.

As ever, this report provides the definitive view of how UK consumers are paying today, while offering valuable insight into the trends that will shape the payments landscape of tomorrow. As the market evolves, UK Finance will continue to work with industry to ensure that our research reflects emerging payment methods and provides the robust evidence needed to inform policy, investment and innovation.