Cash no longer king? 1 in 4 Brits would trust AI to handle payments

By Gloria Methri

As Britain strides further into the cashless era, new findings from SumUp’s nationwide survey spotlight a seismic shift in consumer payment behaviour, signalling major implications for SMEs across the UK. While traditional card payments remain the frontrunner, the appetite for mobile wallets, Buy Now, Pay Later (BNPL) services, and even AI-powered transactions is on the rise, particularly among younger and urban consumers.

A resounding 62% of consumers still prefer paying with debit or credit cards, affirming their continued dominance. Yet, mobile payment options are steadily climbing the ranks: 18% now favour Apple Pay or Google Pay, with popularity skyrocketing among younger adults. Over a third (36%) of 18–24-year-olds use mobile wallets, and 28% of 25–34-year-olds follow suit.

This generational pivot isn’t just behavioural—it’s cognitive. Nearly a quarter of Gen Z and millennials have forgotten their debit card PINs, underscoring their growing detachment from physical cards and growing trust in digital-first tools.

Cash Loses Ground, But Still Has Its Moments

Just 11% of respondents still prefer cash, reflecting an overwhelming tilt towards streamlined digital options. However, 75% still consider cash viable in certain contexts. For many, it remains a budgeting tool (26%), a quicker method (22%), or simply more tangible (17%).

Interestingly, gift-giving occasions like birthdays and Christmas keep cash circulating, with 22% using it only when received as a present. But reluctance towards digital payments still exists: 8% harbour security concerns, while 12% cite digital fees or lack of access as deterrents.

AI-Powered Payments: From Sci-Fi to Spending Reality

Perhaps most tellingly, the survey reveals that 29% of UK consumers would trust AI to make small, automated payments on their behalf. Among these early adopters, 11% are open to full financial automation, while others would delegate recurring bills (12%) or everyday purchases like groceries and transport (7%) to AI assistants.

Yet, scepticism remains. A majority (71%) are uncomfortable relinquishing control, with 38% openly distrusting AI’s decision-making and 33% wanting to approve transactions manually. The data suggests that while AI-driven payments aren’t mainstream yet, the groundwork is being laid, especially as convenience continues to trump tradition.

Why Businesses Can’t Afford to Shun Digital Options

Cash-only businesses risk alienating modern consumers. One in five (19%) find it inconvenient when digital payments aren’t accepted, and 11% admit to avoiding such businesses entirely. Digital inclusivity is fast becoming a baseline expectation, not a bonus.

Subscription-based models and BNPL services are also making inroads. Over half (51%) of Brits changed their payment habits last year, with 22% turning to digital methods and 9% embracing BNPL for its flexibility and deals. A smaller yet notable 4% have adopted subscription payments for essentials like groceries and personal care.

London Leads the Digital Charge

As expected, Londoners are ahead of the curve. While 61% still prefer cards, 20% use mobile wallets, outpacing the national average. And just 8% still prefer cash.

Two-thirds (66%) of Londoners have changed their payment behaviour in the past year, with 28% shifting to digital methods and 14% embracing BNPL. The capital also shows a lower tolerance for analogue businesses: 15% actively avoid cash-only stores, and 26% believe all businesses should modernise—even if they understand the costs involved.

Corin Camenisch, Marketing & Growth Lead at SumUp, summarised the survey’s implications, “While debit and credit cards continue to dominate as the preferred payment method, it’s clear that cash is slowly declining in use, particularly among younger generations. That said, cash still holds its place for many. Looking ahead, we can anticipate a rise in innovative payment methods like digital wallets, especially as younger consumers increasingly embrace the convenience and flexibility they offer.”

The survey indicates that businesses that stay agile and open to technological innovation are more likely to thrive in a landscape where flexibility, speed, and digital integration are fast becoming the norm.