London is largely a cashless city, with many businesses, restaurants, and shops preferring or strictly requiring card or contactless payments. While not universally banned, "card only" policies are common, especially for smaller purchases, making it entirely possible to visit without using physical currency.
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.
Is it legal to refuse cash? In the UK it is not illegal for businesses to refuse cash as payment and, in the same breath, it's not illegal for them to refuse card payments, either. The only situation where this isn't the case is when a business is accepting payment for a debt.
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.
Cashless Society: Busker's 'not keen to meet a cashless future' Tony McGuire reports
Which country is 100% cashless?
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.
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.
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.
Wealthy nations are nearly cashless: Sweden (14%), Norway (10%), and South Korea (10%) show how digital payment infrastructure correlates with economic development.
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 accounted for 12 per cent of all payments made in the UK during 2023, down from 14 per cent in 2022. Almost four out of ten UK adults (39 per cent) were living largely cashless lives during 2023. However, the number of people mainly using cash in 2023 rose to 2.6 per cent per cent of the population.
How much cash can I carry from India to UK? According to Indian regulations set by the Reserve Bank of India (RBI), Indian residents can carry up to ₹25,000 in Indian currency when travelling abroad. In terms of foreign currency, individuals are allowed to carry cash equivalent to $3,000 (approximately ₹250,000).
Having some loose change in your pocket is always helpful when travelling around the UK. This is because small establishments in rural areas may not have the technology to accept purchases using cards. All major cities in the UK have international ATMs, so you can conveniently withdraw cash whenever necessary.
What happens if you get caught paying cash in hand?
You can face prosecution for tax evasion. You can be fined or in some circumstances face imprisonment. If you have had fines for tax evasion, it may affect your ability to obtain credit or secure employment in the future.
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.
Sweden has emerged as the world's first cashless nation, with phone taps and cards replacing physical money. This digital shift, driven by apps like Swish, simplifies transactions for locals and tourists alike. While most establishments accept digital payments, carrying some cash is advised for smaller vendors.
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 risk of other crimes such as identity theft, account takeovers, and fraudulent transactions will also increase when digital payments become the only option. Many banks are also relying on outdated infrastructure with decades-old IT systems increasing the risk of glitches, crashes, and mistakes.
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.
In short: Yes, UK law allows private businesses to refuse cash if they wish. While the Bank of England issues 'legal tender', this term only applies to settling debts, not requiring shops or services to accept cash outright.
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.
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.
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.
It is not illegal to keep cash at home in the UK, but it should be stored securely to mitigate risks. The amount of cash to have on hand varies, but a small amount for emergencies is recommended while keeping most in a secure bank account.
