Yesterday I left the house without my wallet.

Once upon a time that would have been a disaster – but it didn’t matter in the slightest. I had my iPhone. My Apple Wallet held my train tickets and my virtual payment cards, and everything just worked.

At some point, I realised I’ve quietly crossed the line into a world where my phone is my wallet. It doesn’t just hold my payment cards – it replaces the cards I’d need to withdraw cash too. Which raises a question: if physical cards disappear, will we need NFC-enabled ATMs to keep access to cash alive?

The cashless tipping point

According to UK Finance’s UK Payment Markets 2025 report, cards now account for around two-thirds of all payments in the UK. Cash, once king, has slipped below 10% – fewer than one in ten transactions. Over half of UK adults now contactless payments, including both plastic cards and mobile wallets such as Apple Pay or Google Pay.

The Bank of England says cash won’t die out any time soon, but it’s hard to ignore the direction of travel. Every tap of a card or phone accelerates the shift.

Why cash still matters

And yet, we’re not a cashless society – at least, not officially.

The Financial Services and Markets Act 2023 gave the Financial Conduct Authority (FCA) powers to make sure people can still withdraw and deposit notes and coins. Its new Access to Cash Regime came into force last September.

So even as digital payments dominate, the UK is deliberately keeping cash alive – not for nostalgia, but for resilience and inclusion.

Because while most of us can pay with a tap, around 5% of adults still have no internet access, and many more are what Ofcom calls “digitally disadvantaged” – they’re online, but lack confidence or skills.

Cash also serves as a fallback when the technology fails. Power cut, network outage, or card terminal on the blink – the humble £10 note still works.

Emotional value

Then there’s the emotional side.

The Bank of England points out that many people prefer cash for budgeting – physically seeing money leave your hand is more tangible than a number on a screen.

There’s also the matter of privacy. Every card transaction leaves a digital trail; cash doesn’t. For some, that’s reason enough.

The cost question

One argument that keeps popping up is the cost of card payments. Some businesses still cite high processing fees, especially for low-value sales. Others quietly admit that banking and securing cash costs money too.

And it’s rare to find a truly “cash-only” business these days. In a 2020-21 survey by HMRC, only 1% of small businesses described themselves as cash-only.

The “cash only” question

That 1% does make me raise an eyebrow though.

Whenever I see a “cash only” sign, I can’t help wondering whether every pound is being reported to His Majesty’s Revenue and Customs. It’s probably unfair – there are genuine reasons for preferring cash – but the association is hard to shake.

HMRC’s own research shows some tradespeople see “cash jobs” as unlikely to be caught. Maybe that says more about culture than crime, but it lingers in the background.

Should we mourn the loss of cash?

Personally, I don’t think so.

I like the convenience of digital payments, the security of not carrying notes, and the way my wallet has quietly become redundant. The only time I use cash regularly now is at the local market, where some of the traders are cash-only and others just prefer it. Ironically, I still have some euros in my wallet, but rarely any pounds!

But I do think we need to protect choice. A fully digital economy can’t leave behind those who aren’t ready, able or willing to join it.

The regulators seem to agree. Access to cash is now a legal right, even if accepting it isn’t.

Reflection

Forgetting my wallet was a small thing, but it made me stop and think about how quickly we’ve moved from contactless cards to contactless lives. And as much as I enjoy the convenience of paying with a phone, maybe we should all keep a few notes for emergencies.