Fewer than half of Britons now regularly carry a wallet as smartphones and watches increasingly replace cash and cards for everyday spending, according to new research from cash machine network Link.
The study found that while more than 80% of adults still own a wallet or purse, the growth of mobile payment services such as Apple Pay and Google Pay means leaving home without cash — and sometimes without a wallet altogether — has become common.
Generational differences are driving the shift. Digital wallets are now the default payment method for Generation Z and millennials, while older people still rely most heavily on debit cards. Nearly three in ten adults aged 35–44 said they now leave home carrying only a digital wallet, highlighting how quickly habits are changing. High earners were also more likely to depend exclusively on smartphones or watches compared with lower-income households.
Cash, though no longer dominant in any age group, remains part of daily life. More than half of adults reported using notes or coins in the past week, typically for budgeting, small purchases, or in shops that set card minimums. But around 7% of the population — nearly five million people — no longer carry cash at all, while 16 million keep none at home. On average, Britons now go out with just £20 in their pocket and have about £10 in reserve at home.
The reliance on digital systems comes with risks. Six in ten people reported experiencing digital payment failures, and one in five said they had abandoned purchases altogether when systems went down. Adrian Roberts, deputy chief executive of Link, warned of the dangers of over-reliance.
“The old saying ‘cash is king’ may still hold true for some, but today, it’s convenience that wears the crown,” Roberts said. “We’re more digitally reliant than ever but we’re also more exposed to technology outages than ever before.”
He pointed to a recent power outage in Portugal and Spain that left consumers unable to buy food, medicines or fuel after payment systems went offline.
The report also highlighted a lack of back-up options: more than half of adults hold all their payment cards with a single network such as Visa or Mastercard, while many digital wallet users store just one card. This leaves consumers vulnerable if systems fail.
To guard against disruption, Link recommended that people keep a small cash reserve, spread cards across different networks and wallets, install a second banking app, and carry a portable phone charger.
For policymakers, the challenge will be balancing access to cash with strengthening digital resilience. The Bank of England is already working on a “national payments vision,” but Link said more action is needed to safeguard both consumers and retailers.
While the physical wallet has not vanished, its importance is fading fast. As the report suggests, in modern Britain it is no longer the weight of your wallet that matters — but whether your phone has enough signal and battery.
