Cash payments increased for the first time in a decade in 2022 as consumers struggled with rising cost of living, new data reveals.
The data from UK Finance the number of payments made using physical cash increased by 7% last year, compared with 2021, to 6.4 billion payments.
However, that data shows cash payments are still dwarfed by debit card use, which reached its highest-ever level. In 2022, 22.7 billion transactions were made with debit cards, while only four billion were cash.
Part of the reason for that is that people use them to make contactless payments for low-value buys in shops, whereas in the past they might have used coins. The typical amount spent for each contactless card payment was £15.10.
UK Finance said it expected cash use to decline over the coming years, once the current financial squeeze has eased.
Adrian Buckle, Head of Research at UK Finance, said: “There is a wide variety of payment methods available in the UK and each provides specific benefits to the people using them.
“During 2022 we saw increased use of contactless, online banking and mobile payments, although cost-of-living challenges meant that some people preferred to use cash to help with their budgeting.”
