Rise in cash-only spenders driven by cost of living crisis

There has been a steady decline in payments using cash over the last decade, particularly as consumers turn to contactless cards for everyday purchases.

A slight rise in 2022 was attributed to the impact of sharply rising prices, squeezed finances and closely-watched budgets.

Cash use dropped again last year to 12% of all payments, according to UK Finance, and 22 million consumers were primarily cashless.

However, the research suggests 1.5 million mainly used cash in 2023, up from 900,000 the previous year, reflecting the ongoing impact of the cost of living on those with limited incomes.