31 May 2025
by Payments Intelligence
What is this article about?
UK consumer payment behaviours in 2025, highlighting demographic differences in method preference and adoption.
Why is it important?
It shows how evolving payment habits are shaped by age, income, and trust, informing inclusive strategies for businesses and policymakers.
What’s next?
Stakeholders must design secure, accessible, and adaptable payment systems that bridge digital divides and foster consumer confidence.
In May 2025, The Payments Association conducted a follow-up consumer survey to build on its ongoing analysis of evolving payment behaviours in the UK. Conducted in partnership with YouGov, the nationally representative survey engaged 2,292 adults across all regions, age groups, and other demographic factors like social class and employment status. The aim is to explore how consumers are managing everyday transactions and adapting to emerging technologies within a fast-changing payment ecosystem.
This year’s data offers fresh insights into how different demographic factors correlate with the payment preferences of UK consumers. It also highlights the areas where legacy payment methods are proving resilient. From the enduring role of cash in some communities to the growing appeal of mobile wallets and wearables among others, the findings present a complex picture of a market in transition.
For payments professionals, the results underscore the importance of nuance. While innovation remains central to the evolution of payments, widespread consumer adoption is not guaranteed. Certain groups remain cautious, driven by concerns around security, unfamiliarity with digital tools, or structural limitations such as income and access. These insights offer an opportunity to design more inclusive strategies, combining convenience with consumer confidence.
As regulators and businesses prepare for the next wave of digital change, understanding where consumers are today is essential for informing intelligent business strategy and effective regulation.
The 2025 survey data reveals a payment landscape where digital methods are entrenched but not yet universal. Contactless debit cards continue to be most popular for everyday purchases, while mobile wallet use is growing fast, especially among younger consumers, those in full-time work or study, and families with children. At the same time, cash use remains widespread among older people, lower-income groups, and those outside the workforce.
Attitudes toward payment methods are shaped by security, trust, and convenience. Wearable devices are gaining traction among digitally engaged consumers, although their adoption is still limited by affordability and awareness.
Fraud remains prevalent, with credit card and online shopping fraud being the most common forms, and regional disparities, such as elevated investment scam exposure in London, are also apparent. There is recognition of this risk in consumer behaviour: consumers consistently prioritise security over rewards or ease of use, particularly for larger transactions.
When it comes to adopting new payment technologies, a cautious mood prevails. While younger, more affluent, and digitally engaged consumers remain open to innovation, over half the population is hesitant. Regional, social, and generational divides remain present, suggesting that payment innovation alone won’t drive mass adoption and that structural and psychological barriers must also be addressed.
These findings reflect a sector that is steadily modernising but still rooted in traditional behaviours. The opportunities for growth lie not just in introducing new tools, but in bridging gaps in trust, inclusion, and relevance across consumer segments.
Cash remains a regular fixture in the payments landscape, particularly among older, less affluent, and economically inactive demographics. While digital methods continue to gain ground, the enduring use of cash suggests persistent financial behaviours and access needs that must be considered in any move toward a cashless society.
Despite the rising popularity of digital payments, cash remains a regular fixture in many people’s lives. This year’s survey shows 38% of respondents use cash at least once per week, and nearly two-thirds (64%) use it at least once per month, showing physical currency continues to play a meaningful role in everyday transactions.
Gender and age remain important predictors of behaviour. Men continue to use cash more frequently than women with 43% having used it at least once per week compared to 35% of women, echoing last year’s results (41% vs 33%). Similarly, older adults are markedly more reliant on cash, with 72% of over-55s using it at least once per month, compared to just 54% of 18-24-year-olds.
Employment status is another differentiator: only 36% of working individuals use cash weekly, compared to 47% of retirees and 43% of unemployed people, pointing to cash’s continued utility for those on fixed or limited incomes.
Class disparities remain present.The proportion of people using cash on a weekly basis among the less affluent C2DE respondents (43%) still exceeds that of the more affluent ABC1 group (35%), consistent with the divide present last year.
Regional variation is less pronounced overall, yet Northern Ireland remains a clear outlier: 54% of its population use cash at least weekly, well above the national average of 39%.
These findings reaffirm that while digital payment adoption grows, meaningful segments of the population—especially older, less affluent, and economically inactive groups—continue to depend on cash, raising important questions around financial inclusion.
Contactless debit cards continue to dominate, but preferences are shifting. Younger consumers and larger households are increasingly leaning toward mobile wallets, suggesting future growth in this segment. Meanwhile, cash maintains relevance for lower-income groups, reflecting ongoing socio-economic divides in payment behaviour.
Contactless debit cards remain the top choice for everyday payments, with 27% of respondents selecting them as their preferred method. When combined with chip and pin options, debit cards account for 45% of all preferences, firmly ahead of credit cards (15%) and cash (15%). Contactless specifically continues to beat chip and pin (35% vs 25%), confirming public appetite for speed and convenience.
However, the headline trend masks notable generational and demographic shifts. Mobile wallets are gaining traction among younger people, with 30% of 18-24-year-olds and 38% of full-time students, citing them as their preferred payment method, far above the 18% national average. In contrast, retirees remain the least likely to adopt mobile wallets, with just 8% favouring them.
Cash remains meaningful for certain groups, especially among lower socio-economic segments: 19% of C2DE respondents prefer cash, compared to 12% of ABC1s. This gap is consistent with last year, reinforcing its importance in financial routines such as budgeting.
Small regional differences persist. The South’s preference for contactless debit cards stands at 29%, compared to 23% in Northern Ireland.
Family structure also plays a role: households with three or more children are more likely to prefer mobile wallets (30%), whereas childless households lean toward contactless debit cards (28%). These nuances illustrate the complexity of payment behaviours, shaped by age, income, lifestyle, and access.
Support for retaining both cash and digital payment options remains high. However, age, class, and lifestyle are clear dividing lines, with older and lower-income consumers placing greater importance on access to cash. The results reinforce the need for inclusive infrastructure as the market digitises.
This year’s data reaffirm a broad consensus on the importance of keeping cash as a payment option, with 88% of respondents rating it as important, identical to the figure reported in last year’s survey. Once again, 62% say it is “very important,” underscoring sustained public demand for flexibility in payment methods despite the growing adoption of digital alternatives.
Yet within that consistency, age and class divides have grown starker. This year, only 40% of 18-24-year-olds consider the ability to pay with cash “very important,” compared to 77% of over-55s, a 37-point gap. In 2024, this difference was a 33-point gap, with both groups moving away from each other. This consistent disparity suggests younger consumers are more comfortable with a digital-first economy, while older groups remain attached to physical money.
Social grade continues to shape attitudes. In 2025, 70% of C2DE respondents say having the option to pay with cash was “very important,” compared to 56% of ABC1s. This class-based gap reflects enduring concerns over financial inclusion and access to digital infrastructure.
Regional patterns also persist. Northern Ireland remains a national outlier: 97% of respondents there support maintaining cash access, with a striking 84% rating it “very important”, a significant increase from 67% last year.
Meanwhile, only 37% of full-time students say the same, further confirming that age, income, and lifestyle continue to define how payment options are valued.
Wearable payments remain niche but are showing early signs of growth among younger, affluent, and tech-engaged consumers, particularly in urban centres. Adoption is still limited by age, income, and digital exposure, but the technology’s trajectory suggests long-term potential in frictionless payments.
Data confirms that wearable payment devices have yet to break into the mainstream: 78% of respondents say they never use them, virtually unchanged from the 79% reported in 2024.
Adoption remains low, particularly among older and lower-income groups, but signs of growth are visible in key demographics.
Young people continue to lead adoption. In 2025, 31% of 18–24-year-olds reported using a wearable payment device at least once a month, broadly in line with 24% the previous year. In contrast, just 5% of the over-55 group report the same, consistent with 4% last year.
Gender differences persist, with 20% of men saying they’ve used a wearable in the past month, compared to 11% of women. This marks a widening gender gap, as last year’s survey found 16% of men and 10% of women reported having used a wearable payment device in the past month.
Affluence also plays a role: ABC1 respondents (19%) were almost twice as likely to use wearables as C2DEs (10%), a five-point growth on last year’s class-based gap.
Regional trends remain consistent, with London again leading the way. The 2025 survey shows 30% of Londoners have used a wearable device at least once in the past month, up from 23% monthly usage in 2024, and double the national average of 15%.
Wearable usage also correlates with digital engagement. Those active on X (27%), TikTok (26%), and Snapchat (26%) are substantially more likely to have used wearable payment technology in the past month, suggesting a growing convergence between social media behaviour and payment innovation.
Online payments are now routine for the majority of consumers, likely driven by convenience and embedded digital habits. Usage is highest among working-age adults and families, while older and younger age groups lag slightly. Social grade and household dynamics remain key influencers of frequency.
This year’s data underscores the normalisation of online payments, with 52% of respondents saying they make at least one online payment per week. Of that group, more than half are making multiple online payments weekly, highlighting just how embedded digital transactions have become in day-to-day life.
Looking at specific consumer segments shows there is substantial variety in how often people are making online payments. Younger (18–24) individuals are the outlier here, with only 15% making multiple online payments a week, substantially below the group average of 28%. In contrast, those aged 45–54 are the most active, with 39% making multiple online purchases weekly, consistent with their prominent roles in work and family life.
Social grade continues to be a strong differentiator. Among ABC1 respondents, 58% make at least one online payment each week, compared to just 43% in the C2DE group, supporting patterns observed in 2024.
Regional disparities have shifted. In 2025, the Midlands has the lowest rate of weekly online payments at 46%, while Northern Ireland leads at 56%. In 2024, Northern Ireland had the fewest people making multiple online payments each week at 44%, whilst the South had the highest at 53%.
Employment and family status also matter. Those in work and households with children are significantly more likely to make frequent online payments, while students and the unemployed report much lower usage.
Debit cards hold their lead, but younger users and higher social grades are increasingly embracing digital wallets. Regional and class-based differences in preferences persist, highlighting varied comfort levels with emerging tools. London and tech-literate consumers continue to drive diversification in online payment methods.
Debit cards remain the most popular method for online payments, with 33% of respondents selecting them as their preferred option, showing no change from last year’s survey. Their ongoing dominance may reflect consumer comfort with familiarity and control over spending. Additionally, debit cards are the preferred payment method of the 45-54 age group who make the most regular online purchases.
While 18-24-year-olds still favour debit cards (32%), digital wallets are now a close second at 29%, broadly consistent with from 24% last year. Among over-55s, only 7% prefer digital wallets, reinforcing the generational divide in payment habits.
Differences by social grade are also pronounced. Among C2DE respondents, 41% prefer debit cards, and only 18% opt for online platforms like PayPal, demonstrating a stronger reliance on more traditional tools. In contrast, ABC1 respondents are more evenly split: 28% favour debit cards, 24% credit cards, and 21% digital wallets, indicating more varied usage driven by financial flexibility and broader access to digital tools.
London continues to stand out. Only 26% of Londoners prefer debit cards for online purchases – the lowest of any region – while 23% prefer digital wallets, the highest regional figure for this method. This reflects the capital’s more tech-forward consumer base.
Employment status also influences preference: 47% of unemployed respondents favour debit cards for online payments, compared to just 31% of those in work, suggesting stronger associations between financial constraints and reliance on direct-spend methods.
Security remains the overriding concern across all demographics when it comes to high-value purchases. However, younger consumers and households with children are more likely to prioritise convenience or rewards, revealing subtle but meaningful differences in how trust, value, and experience influence payment choices.
In 2025, 54% of respondents selected security as their top priority—virtually unchanged from 53% last year—demonstrating consistent concern about fraud prevention and payment protection.
This year’s data, however, reveals widening demographic distinctions. Women are significantly more likely to prioritise security (59%) than men (49%), a contrast to 2024’s narrower gender gap (56% vs 51%). Age also plays a growing role: only 40% of 18–24-year-olds chose security, with 27% instead valuing convenience, more than any other group. This supports last year’s observation that younger, digitally engaged consumers may prefer streamlined, frictionless options.
While social grade appears to have minimal influence on the prioritisation of security – 54% of both ABC1 and C2DE respondents selected it—ABC1 individuals are more likely to favour rewards points or cashback (16% vs 12%). This reflects a continued alignment between affluence and loyalty-based benefits, consistent with last year’s patterns.
Regional differences endure. In Northern Ireland, 63% selected security as most important, the highest of any region. Londoners, by contrast, remain outliers: only 47% prioritise security, and 19% rate rewards or cashback highest, echoing 2024 findings where London also placed less emphasis on security.
Household composition also matters. While 59% of child-free households prioritise security, only 43% of those with children do. Households with children are more likely to value loyalty perks (21%), compared to 12% of child-free households, suggesting a practical focus on maximising returns during larger household spends.
Consumers show a fragmented set of preferences when transacting abroad, with no clear frontrunner. Cash remains strong, but mobile wallets are gaining traction among younger, urban, and affluent groups. This diversity suggests differing levels of comfort, access, and strategy in cross-border spending.
When it comes to making payments abroad, no single method stands out as dominant. This year’s survey shows that while 28% of respondents default to using their regular domestic card, cash remains the most popular specific method, selected by 17% of respondents, slightly down from 20% last year. This marginal decline suggests cash still plays a significant role, but its position may be eroding amid growing diversity in payment preferences.
The 2025 data shows a more fragmented payment landscape. No alternative method exceeded 10% overall, underscoring that travellers now spread their preferences across multiple tools, including travel credit cards, travel-specific cards, and mobile wallets.
Notably, mobile wallet use is growing, particularly among younger and more affluent respondents. While only 2% of over-55s prefer mobile wallets abroad, 13% of under-35s do.
Similarly, 11% of ABC1 respondents opt for this method compared to just 4% of C2DEs.
Regional differences are less pronounced this year. Cash use abroad sits consistently around 17% across all UK regions, but London remains ahead in mobile wallet adoption at 15%, well above the national average of 8% and consistent with 10% last year.
Family status also influences preferences. Parents are less likely to prefer cash (14%) and more likely to choose mobile wallets (14%) compared to child-free households, where 19% still favour cash.
These findings reflect a slow but steady diversification in payment behaviours abroad, shaped by age, income, and digital familiarity rather than geography alone.
Fraud continues to affect a large share of consumers, with credit card and online shopping scams most common. Demographic distinctions are becoming less pronounced overall, but certain regions and digital profiles face higher exposure to specific threats like investment scams.
In 2025, 37% of respondents reported having been victims of some kind of fraud, a one-point drop from last year’s results.
The most common forms remain consistent: credit card fraud leads at 13% of all respondents, followed closely by online shopping fraud at 11%.
Regional patterns show only subtle variations. Northern Ireland now reports slightly higher fraud exposure, with just 48% claiming to have never been victims, the lowest of any region. By contrast, 61% of Scottish respondents remain untouched by fraud, suggesting regional differences in exposure or reporting.
London continues to stand out. The capital has the second highest reported fraud rate at 38% and is particularly vulnerable to investment scams, with 7% of Londoners reporting victimisation, more than double the 3% national average.
Phishing scams remain evenly distributed across age groups, with 10% of respondents reporting victimisation. While this uniformity could imply equal susceptibility, it may also mask underlying disparities in exposure, such as older people encountering more scams but responding more cautiously.
As in the 2024 data, this year’s results show minimal differences in susceptibility to fraud and demographic factors, such as gender, social class, and household composition.
Consumer appetite for adopting new payment methods shows a small increase relative to last year. Openness is especially strong among younger, more affluent, and digitally engaged individuals, especially those in households with children. The divide underscores a growing bifurcation in innovation readiness.
Consumers appear more open to new payment technologies compared to last year. In 2025, 55% of respondents stated that they are unlikely to adopt a new payment method in the future, down from 66% who expressed the same sentiment last year.
The proportion of those saying they are likely to adopt a new payment method has grown from 21% to 27%, with an increasing number of people unsure of their position.
As in 2024, younger consumers remain the most receptive. This year, 40% of individuals aged 18 – 34 say they are “very” or “fairly likely” to adopt a new method, with just 41% expressing resistance. This indicates a substantial growth in openness to new payment methods, with around 37% of this group stating they would likely adopt a new method last year, and 50% saying they probably wouldn’t.
Social grade continues to shape willingness to adopt. Among ABC1 respondents, 33% say they are likely to try a new method, compared to just 19% of C2DEs. This 14-point gap has widened since last year, when the difference was nine points (25% vs 16%).
Regional patterns persist, with Northern Ireland once again the most resistant: 66% of respondents there are unlikely to adopt a new method, showing no significant change from 63% last year. Londoners remain the most open, with 34% indicating an interest in options such as a digital pound.
Parents and professionals also stand out. This year, 40% of individuals in households with children are open to new payment methods, compared to just 22% of child-free homes. Similarly, 45% of LinkedIn users—a group skewing younger and more affluent—are likely to adopt new payment technologies.
The 2025 findings depict a payment ecosystem in steady transition. While digital payment methods, particularly contactless debit cards and mobile wallets, show widespread popularity, their growth is tempered by persistent habits and structural divides. Age, income, and region remain critical factors in determining payment preferences, and cash continues to play a vital role in the financial lives of many, particularly the elderly, economically inactive individuals, and those in lower-income brackets.
Security has emerged as a defining theme across the survey, particularly in the context of high-value purchases and growing fraud risk. Consumers remain wary of unfamiliar payment technologies and are more likely to embrace change when safety and control are assured. This cautious outlook is reinforced by limited enthusiasm for adopting new payment methods, with a majority of respondents signalling hesitation or resistance, though younger and more tech-savvy groups are more receptive.
For businesses, banks, and policymakers, these results are a reminder that successful payment innovation must be inclusive by design. The challenge is not simply to roll out new tools, but to ensure those tools are intuitive, secure, and tailored to the diverse needs of consumers. This means addressing digital literacy, closing affordability gaps, and maintaining robust protections against fraud.
In a market where behavioural shifts occur incrementally and unevenly, strategy must balance forward-looking ambition with sensitivity to the present.
Implications for product leads:
Implications for compliance and risk professionals:
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,292 adults. Fieldwork was undertaken between 14th – 15th May 2025. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
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