For years, cash was widely viewed as a declining payment method, steadily displaced by cards, mobile wallets, and account-to-account transfers. Yet recent data suggests the narrative is shifting.
According to a recent Finextra report citing Nationwide Building Society figures, cash withdrawals in the UK have risen for the fourth consecutive year, underlining that physical money still plays a meaningful role in everyday financial behaviour.
In 2025, cash withdrawals at Nationwide ATMs reached a total value of £4.2 billion, marking the highest level since at least 2017. Around 34.7 million withdrawals were made during the year, representing a 6% increase year on year. The average withdrawal value also rose, climbing from £113 in 2024 to £120 in 2025, suggesting that consumers are withdrawing cash less frequently but in larger amounts.
This sustained growth comes despite the continued expansion of digital payments and ongoing bank branch closures across the UK. It also follows a sharp drop in cash usage during the pandemic, when lockdowns and contactless payments caused withdrawal volumes to fall dramatically.
Still below pre-pandemic volumes but catching up
While the total value of cash withdrawn in 2025 has surpassed pre-pandemic highs, volumes remain lower than before Covid-19. In 2019, Nationwide customers made approximately 44–45 million cash withdrawals annually. That figure fell by more than 40% during 2020–2021, dropping to the mid-20-million range.
Since then, volumes have recovered steadily: from just over 30 million withdrawals in 2022 to nearly 35 million in 2025. The gap with pre-pandemic levels is narrowing, but the structure of cash usage has clearly changed. Higher withdrawal values now compensate for fewer visits to ATMs, pushing overall cash value upward even as transaction counts lag behind historic peaks.
Digital payment fatigue sets in
One explanation behind the renewed interest in cash is digital payment fatigue. As consumers juggle cards, mobile wallets, subscriptions, BNPL instalments, and real-time payments, it often feels non-substantial and virtual, making people lose track of their real expenses, so some are opting for the simplicity and finality of cash. Physical money offers instant settlement, no fees, and a tangible sense of control that digital interfaces often lack.
Nationwide points to the cost-of-living crisis as a major factor, too. With inflation squeezing household budgets, many people are using cash as a budgeting tool, withdrawing set amounts to better manage spending. Behavioural research consistently shows that consumers tend to spend less when using cash compared to cards, reinforcing its appeal during financially uncertain periods.
Considering all these factors, it is no wonder that cash use in UK stores has also grown by over 20% in two years, though contactless methods are their favourite ways to pay in-store.
Resilience and trust also matter
Recent outages affecting banks and payment systems have also reminded consumers of the importance of payment resilience. Cash functions offline and remains usable regardless of technical disruptions, making it a practical backup in an increasingly digitised economy.
Meanwhile, the continued closure of bank branches has altered withdrawal behaviour. With fewer access points available, customers are more likely to withdraw larger sums when they do reach an ATM — a trend reflected in rising average withdrawal values.
Cash as a complement, not a competitor
The resurgence of cash does not signal a reversal of digitalisation. Cards and mobile payments continue to dominate transaction growth across retail and e-commerce. Instead, cash is evolving into a complementary payment method, valued for control, transparency, and reliability rather than convenience.
At the same time, we currently see that 100% cashless societies are no more than utopias in the modern world. As recent findings show, cash is not a legacy instrument in decline. In an era of digital overload, it is increasingly serving as a stabilising counterbalance — one that consumers return to when they want clarity, discipline, and certainty in how they spend.
