Yes, many shops in London still accept cash, but the city is heavily moving towards a cashless society, and businesses are legally allowed to refuse it. While large retailers and tourist spots mostly accept both, some smaller, independent, or trendy cafes and shops may be "card-only". It is highly recommended to have a card for convenience.
Most larger stores in London prefer cards, but will still take cash. Many smaller establishments like coffee shops will not take cash at all. Card acceptance is nearly universal; you can go many weeks in London without ever spending cash.
To put it abruptly, yes, shops in the UK can legally refuse cash payment. While cash is considered a legal tender, businesses have no legal obligation to accept it and have the right to set their own payment policies.
Sweden has officially become the first country in the world to go completely cashless. Almost every shop, café, and public transport system in Sweden now accepts only digital payments like cards or mobile apps. The popular app “Swish,” launched in 2012, is used by millions of Swedes to send and receive money instantly.
According to studies conducted by the Federal Reserve, cash usage has been on a steady decline. In 2021, cash was used for approximately 20 percent of all transactions. Fast forward to 2024, and the downward trend persists, with reports indicating that cash payments now represent a mere 16 percent of all transactions.
The UK is rapidly moving towards being a low-cash, but not fully cashless, society, with digital payments dominating, yet cash remains crucial for millions, especially vulnerable groups, leading to government efforts to protect access via legislation, banking hubs, and ATMs, even as some businesses go card-only and digital ID plans emerge. While cash use has plummeted (less than 10% of payments in 2024/25), the Bank of England and officials stress that a completely cashless system isn't feasible or desirable yet, focusing on maintaining choice and access for everyone, including the elderly and low-income individuals.
Is It Illegal To Pay Cash in Hand? The short answer is no—cash-in-hand payments are not illegal. However, things can get complicated if the right legal procedures aren't followed. While paying employees in cash may seem easy, employers and employees must ensure compliance with tax and employment laws.
Cash remains prevalent because it is stable and resilient. Regardless of the state of the economy wherever you are in the world, having cash means you can easily purchase goods and services.
Which way will you pay in the UK? In most cases, paying by card is more convenient than cash, though we always recommend carrying a small amount of cash for parking, taxis, small purchases and tips. Ideally, take a Wise Mastercard and a Visa debit or credit card with you – plus a small amount of cash.
Lots of places still take cash. Some won't take 50 pound notes though so try to have some smaller denominations. We used cash for black cabs, buses, at co-ops and some gift shops. Used visa everywhere else.
You can pay as you go using contactless (card or device), an Oyster card or a Visitor Oyster card. It also offers great value as pay as you go is cheaper than buying single tickets and you get daily and weekly capping.
From pubs to restaurants, London's business owners are turning down physical cash and providing a card-only service. But what has driven this change? Well, let's take a look at some of the benefits of a cashless society and you can see for yourself why the move towards cashless is trending.
Overall, around 39 per cent of UK adults lived largely cashless lives throughout 2023. However, the number of people mainly using cash actually rose to 2.6 per cent (an increase from 1.7 per cent in 2022). For now, cash remains the second most frequently used payment method in the UK.
London buses are all cashless, so you need an Oyster card, Travelcard or contactless payment card to ride. The bus fare in London is £1.75, and a day of bus-only travel will cost a maximum of £5.25. You can make unlimited free transfers to other buses and trams within one hour of touching in for your first journey.
Cash is legal tender in the UK, but businesses are not obliged to serve people who only want to pay with notes and coins. Some countries, such as Australia, are planning rules that would force essential services to accept cash.
Cash deposits over $5,000 don't automatically trigger a government report. But they do put the transaction into a higher scrutiny bucket inside your bank. Tellers are trained to watch for patterns that look unusual for you. A single large deposit tied to a clear explanation rarely raises eyebrows.
Fact Check: Britain has not announced a ban on cash payments over 10,000 pounds. Britons will not face a ban on cash payments over 10,000 pounds ($13,200) or compulsory identity checks for payments above 6,300 pounds ($8,300) from 2027, contrary to posts online that say the government has announced such rules.
UK Finance research has shown that 39% of adults live an almost cashless life. As well as predicting that cash payments in the UK will continue to decline, and that by 2031, cash will account for 6% of all payments.
Norway has the one of the lowest physical cash rates in the world, with only 3-5% of point of sale transactions paid for by cash. In 2021, Norway's central bank announcedthat it was exploring digital currency options to help facilitate the switch to a cash-free society.
Perhaps the most surprising thing about the world in 2050 is that we will no longer be using money as we now know it. Not only will we see the disappearance of notes and coins - which it is commonplace to assume will be replaced by 'electronic cash' - but also of the type of money we now hold in our bank accounts.
More than half of Gen Z (53%) say they only use physical cash as a last resort, and nearly one in three (29%) describe cash users as “out of touch” or “cringe.” Over half (54%) admit they are more likely to spend impulsively when using cash compared to digital payments.
The UK is rapidly moving towards being a low-cash, but not fully cashless, society, with digital payments dominating, yet cash remains crucial for millions, especially vulnerable groups, leading to government efforts to protect access via legislation, banking hubs, and ATMs, even as some businesses go card-only and digital ID plans emerge. While cash use has plummeted (less than 10% of payments in 2024/25), the Bank of England and officials stress that a completely cashless system isn't feasible or desirable yet, focusing on maintaining choice and access for everyone, including the elderly and low-income individuals.
You have several avenues to explore, including savings accounts, fixed deposit schemes, short-term endowment plans, and investment accounts. Cash managed accounts are the latest options to stash your cash – and earn returns while doing so.
