As digital payments continue to grow in popularity, the UK is experiencing a significant shift towards cashless transactions. With the rise in contactless payments and digital wallets, we’re witnessing how everyday consumers are relying less on cash and traditional payment methods.

To better understand how payment preferences are changing, SumUp conducted a nationwide survey of UK consumers.

So, how do people in Scotland prefer to pay?

Preferred payment methods in Scotland

In recent years, the way people pay for goods and services has gone through a significant transformation. With a growing range of payment options available, from contactless cards to mobile wallets, and Buy Now, Pay Later services, consumers are increasingly looking for convenience, security, and flexibility in how they make purchases. But which methods are the most preferred?

The survey suggests that over half (56%) of people in Scotland prefer to pay with debit or credit cards, highlighting the continued dominance of traditional card-based transactions.

Furthermore, 15% of people prefer to pay with cash as their go-to payment. Among them, over a quarter (28%) say it helps them feel more in control of their spending.

Meanwhile, 14% find mobile payments like Apple Pay or Google Pay the most convenient option. An additional 7% prefer Buy Now, Pay Later services such as Klarna or Clearpay, which some retailers now offer in-store. While the same proportion opt for mobile-only apps like PayPal.

Furthermore, 15% of people prefer to pay with cash, with over a quarter of people (28%) who said they prefer to pay with this payment method saying it makes them feel more in control of their spending, whilst a quarter (25%) say they find it quicker or more convenient.

The factors that have influenced change

Over half (55%) of people said that they have changed the way they pay for goods and services over the past year. Among them, 21% have embraced digital payment methods, with the increased convenience of this method being a key factor in their decision.

Additionally, 19% of consumers in Scotland have reduced their use of cash, largely due to merchants and transportation services adopting tap-to-pay, making physical cash less necessary. Meanwhile, 9% have turned to Buy Now, Pay Later services, appreciating the flexibility of spreading payments over time and taking advantage of special offers from retailers through these services.

Furthermore, 5% have started using subscription-based services for regular purchases such as groceries, pet food, or personal hygiene products, enjoying the ease of scheduled deliveries and fixed payment plans. These shifts all reflect the growing demands for convenience and flexibility in how consumers make purchases.

How do consumers feel about businesses that don’t accept digital payments?

With most Scottish consumers now preferring digital payment methods, how do they feel about businesses that haven’t made the switch?

For 12% of consumers, they actively avoid businesses that don’t accept digital payments, stating that they expect all retailers to offer modern payment options. A further 15% described cash-only businesses as inconvenient, saying they prefer to shop with those that support contactless or digital wallet transactions.

However, the sentiment isn’t entirely one-sided. A further 15% of people believe businesses should be accepting digital payment methods, but understand why some may not. Meanwhile, 47% of people said they don’t mind either way, often carrying cash as a backup in case digital payment isn’t available.

Interestingly, 10% of consumers actually prefer shopping at cash-only businesses for certain types of transactions, suggesting that while the majority are moving towards digital, there’s still a niche appreciation for traditional payment methods.

Would Scottish consumers let AI make payments on their behalf?

Despite growing interest in automation, the majority of consumers remain cautious about trusting AI with their finances. Nearly three-quarters (73%) say they wouldn’t trust AI to make automated payments on their behalf—either because they prefer to review transactions before they happen (37%) or because they don’t trust AI to handle financial decisions at all (36%).

Only 27% of respondents say they would trust AI for some level of automated payment. Of those, 12% are open to using it for recurring expenses like bills or subscriptions, 8% for everyday purchases such as groceries or transport, and just 8% say they’d trust AI for all types of payments.

Payment preferences across the UK overall

Looking at the UK as a whole, over half of people (62%) say that they prefer to pay with debit or credit cards, highlighting the continued dominance of traditional card-based transactions.

In addition, 18% of consumers find mobile payment options, such as Apple Pay and Google Pay to be the most convenient choice, reflecting the growing adoption of digital wallets. Only 11% of people still favour paying in cash, highlighting the shift towards more streamlined and digital alternatives.

Over half (51%) of people said that they have changed the way they pay for goods and services over the past year. Among them, 22% have embraced digital payment methods, with the increased convenience of this method being a key factor in their decision.

The rise of Buy Now, Pay Later services has also left a mark, with 9% of people turning to them to spread their payments over time.

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Meanwhile, a quarter (25%) of people express a dislike for paying with cash, and for many, businesses that don’t offer digital payment options can be a source of frustration. In fact, 19% find it inconvenient when a business doesn’t accept digital payments or cards, while 11% actively avoid such businesses, expecting all establishments to provide digital payment options as a standard.

Corin Camenisch, marketing & growth lead at SumUp commented on the report, saying “We ran this survey to gain a deeper understanding of UK consumers’ ever-evolving payment preferences and to offer valuable guidance to SMEs, helping them to adapt to changing consumer behaviours and better meet their customer needs.

“While debit and credit cards continue to dominate as the preferred payment method, it’s clear that cash is slowly declining in use, particularly among younger generations. That said, cash still holds its place for many. Looking ahead, we can anticipate a rise in innovative payment methods like digital wallets, especially as younger consumers increasingly embrace the convenience and flexibility they offer.”