You generally do not need cash in London, as the city is overwhelmingly cashless, with cards, Apple Pay, and contactless payments accepted almost everywhere. Carrying a small amount (approx. £20–£50) is only needed for rare, small independent stalls, tips, or specific machines.
Almost all places in the UK will take credit cards, and they will have the better exchange rate. There will rarely be a need for cash, unless you are tipping, which isn't as common as in the US. It isn't a bad idea to have a small amount of £s just in case.
Is it better to use cash or credit card in London?
Both methods work in London, but cash is often more convenient. Credit cards are also widely accepted, so you won't have to worry about being charged for things you don't actually need.
Interestingly, while London is undoubtedly becoming more cashless—many shops and restaurants now prefer card payments—there are still places where having some cash on hand is beneficial. For instance, small vendors at markets like Borough Market or Camden Lock often only accept cash.
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.
Visitor's Guide to Money in London 💷(skip the currency exchanges)
Why is cash not accepted in London?
While legal definitions vary across regions, the UK government, in response to a 2022 petition, affirmed the autonomy of businesses to choose what specific payment methods they accept. Various shops opt for cashless transactions due to cost reductions in cash management.
Majority of places accept both card and cash. The amount of places that are card only are pretty much on par with the amount that are cash only. As a visitor, you don't necessarily need cash as you probably won't know about or visit the cash only places.
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.
The 2/3/4 rule for credit cards is a guideline, notably used by Bank of America, that limits how many new cards you can get approved for: no more than two in 30 days, three in 12 months, and four in 24 months, helping manage hard inquiries and credit risk. It's a strategy to space out applications, preventing too many hard pulls on your credit report and helping maintain financial health by avoiding over-extending yourself.
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.
“There are clear and distinctive categories – 50% for needs, 30% for wants and 20% to put aside as savings.” If £1,500 comes into your account each month, this means £750 would go towards your 'needs' – rent, council tax, energy bill, food and transport to and from work.
A Visitor Oyster Card costs £5. You can then pre-load the card with pay-as-you-go credit, in quantities of £10, £15, £25, £40 or £50. The Visitor Oyster card is the cheapest way of getting around London as the maximum daily charges mean you travel free after you reach the 'daily cap'.
To pay the right fare, always touch in on a yellow card reader at the start of your journey and touch out at the end. On a bus or tram you only need to touch in. Because where you touch in and out tells us where you've travelled from and to, so we can charge you the right fare for your journey.
Big names like Visa and Mastercard are accepted all over the UK. American Express cards are not as widely accepted as Visa and Mastercard. Apple Pay and Google Pay are also widely accepted in the UK. You should use your card for large purchases rather than for withdrawing cash.
While having cash can be useful in some scenarios (such as for tipping), you'll find London is largely a cashless city – with contactless payments at shops, restaurants and on public transport common. It's a good idea to take a travel-friendly credit or debit card with you when you travel to London.
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.
The data shows more than three-quarters of people (76%) believe it is important to have the option to pay with cash and 82% think all shops should accept it. Key Findings: Contactless via card remains the most preferred payment method for consumers with 40% choosing this option.
🎒Backpacker Budget: £15 a day - It's possible to spend just £15 a day in London by skipping the souvenirs, grabbing meal deals & being conscious of how you get around the city. 👌 Mid-Range Budget: £70 a day - It's more realistic to spend an average of £70 a day in London on food, drink, transport & souvenirs.
