Two decades since chip and pin became mandatory for UK retailers, there are now multiple payment choices when you arrive at the checkout.

While paying by card or with a simple tap of your phone are popular options, increasing numbers of people are choosing cash. In fact, in 2025, cash withdrawals from Nationwide ATMs totalled £4.2 billion – beating the 2017 high of £4 billion. [1]

Nationwide’s statistics about customer cash withdrawals since 2021 are enlightening:

Source: Nationwide

When you consider how many stores are making it harder to pay with cash, these findings may surprise you.

Yet those choosing to spend physical cash could be on to something.

Using cash could make you think harder about your spending decisions

When you pay by cash, the transaction can carry more weight, which could lead you to spend more mindfully and avoid making impulse purchases.

Imagine holding a crisp stack of £20 notes in your hand – feeling the plasticky paper between your fingers creates an emotional connection that you don’t experience with digital payments. Quite simply, seeing how much money you’re parting with makes your purchase decisions more real.

Tapping your phone or paying by card is quick and easy, and can come with added benefits

Love them or loathe them, self-checkouts have made it quick and easy to pay. Since stores tend to favour card payments over cash, there’s rarely a queue to check out.

Credit and debit cards are also relatively secure. With many people now banking online, apps make it quick and simple to freeze the card in case of theft or if you lose your wallet.

Of course, you may already have chosen to ditch your wallet altogether – choosing instead to rely on your smartphone and pay through your banking app, Apple Pay, or Google Pay.

While using cash can help you budget by withdrawing only a set sum each week or month, online banking allows you to view your transactions within moments of making a payment, making it easy to keep track of your spending and monitor your bank balance in real time.

Some accounts encourage you to set up separate spending pots, for example:

• Household bills
• Monthly groceries
• Takeaways and dining out
• Entertainment subscriptions / cinema trips / gigs
• Longer-term savings for your next big holiday, car, or other big-ticket purchases.

While many banks offer cashback deals when you spend with your debit card, credit cards provide a myriad of valuable perks – just be sure to keep on top of monthly payments and remain debt-free.

Enjoy greater security and more privacy via virtual cards

If you already favour paying by card, you may want to think about the virtues of going virtual.

If you’re used to using Apple Pay or Google Pay, you’re already partway there, as virtual cards work very similarly.

Secured by encryption, disposable virtual cards come with a high degree of security. Indeed, if you prefer cash to cards because you dislike the idea of banks, governments, or other agencies tracking your spending habits, a supply of disposable virtual cards could provide the privacy you desire.

Virtual cards could be useful when:

• Subscribing to TV streaming services such as Amazon Prime or Netflix
• Signing up for food delivery services, like Deliveroo or HelloFresh
• Purchasing from a brand-new website – to disguise your actual card number and increase the security of your payment
• Travelling or booking holidays – many virtual card providers allow you to spend in different currencies for relatively low fees.

Get in touch

Spending and budgeting form the bedrock of good financial planning, and with more payment methods emerging, you may wish to rethink how you handle your regular payments.

If you’re interested in learning more about how reviewing your spending habits could help to boost your long-term financial plan, we’re here to answer your questions.

Email info.wp@titanwh.com or call us on 0800 048 0150.

Please note

The information contained in this article is based on the opinion of Titan Wealth Planning and does not constitute financial advice or a recommendation for any investment or retirement strategy.

All information is correct at the time of writing and is subject to change in the future.