In 2023 the total number of payments made in the UK was 48.1 billion, up from 45.7 billion in 2022. Consumers accounted for 85% of these, with businesses making up the remaining 15%.

Debit cards remain the most popular payment method, accounting for 51% of all payments made in 2023. Faster Payments overtook Direct Debit to become the third most used payment type.

Meanwhile, after a rise in the number of cash payments for the first time in a decade in 2022, the volume fell seven per cent in 2023. Cash accounted for just 12% of all payments last year, with almost four out of ten UK adults were living largely cashless lives.

In contrast, usage of contactless and mobile contactless payments continued to increase. During 2023, there were 18.3 billion contactless payments made in the UK, an increase of seven per cent. In total, contactless payments represented 38% of all payments made in the UK.

Looking specifically at mobile contactless payments, the number of people registered for the likes of Apple Pay and Google Pay hit 42% of the adult population, up from 30% in 2022. In terms of usage, one third used mobile contactless payments at least once a month in 2023.

Adrian Buckle, head of research, UK Finance, says: “Over the next decade we forecast that the long run trend of a decline in cash use and growth of certain other payment methods such as cards and Faster Payments, will continue."

The data chimes with recent research from Marqeta, which found that 80% of Brits used contactless payments in the past week, almost double that reported in the US. The survey also found that over two-thirds of UK consumers now feel confident enough to leave their physical wallets at home and 50% have decreased their cash spending in the past year.