Payments in the UK: innovation, choice and the future of how we pay

Evidence tier: A1 Evidence type: Auto-discovered official publication Source: Barclays browser-verified publication index Official publication date: 2026-06-29 Captured: 2026-07-18T16:32:07.793Z

How we pay says a great deal about how we live. Today marks 60 years since Barclays launched the UK’s first credit card, and in the decades since, payments in the UK have been transformed by technology, shifting consumer expectations and growing demand for speed, security and convenience.

From credit cards to chip and pin, contactless cards, mobile wallets and wearables, the story of payments is one of constant reinvention. If there is one lesson from that history, it is this: innovation matters most when it makes everyday life easier for more people.

That shift is clear in how consumers now choose to pay. Barclays research shows that for in-store payments under £100, Gen Z is most likely to use mobile payments, with 54% naming them as their preferred method, ahead of contactless debit or credit cards at 48% and cash at 27%.

Across the wider population, a third of consumers say they do not tend to carry cash when they leave the house. Nearly three in ten often leave home without a physical card, rising to almost half of Gen Z. Yet convenience can sometimes outpace preparedness: 18% say they often find themselves needing a physical card when they do not have one with them.

This tells us something important about the future of payments in the UK. Digital methods are becoming more embedded in daily life, especially among younger consumers, but the picture is not one of simple replacement.

Some methods are fading fast: more than one in five consumers say they have never used a cheque, rising to 44% of Gen Z. Cash, however, remains remarkably resilient. Just 1% of consumers say they have never used cash, and only 3% say they used to use it but no longer do.

The direction of travel is clear, but so is the need to preserve choice. The strongest payments ecosystem will combine innovation with inclusion, ensuring people can pay in the way that works best for them.