A new report by global financial technology company SumUp suggests that only 5% of people in Manchester prefer to pay with cash, while 59% choose debit and credit cards. Is Manchester on its way to becoming a cashless city?

To discover how payment preferences are evolving, SumUp conducted a nationwide survey, gathering insights from UK consumers about their payment habits. Insights include the payment methods people prefer, their concerns around certain payment methods, alongside how they feel about businesses that don’t accept digital payments.

Preferred payment methods in Manchester

Unsurprisingly, debit and credit cards remain the top choice for the majority of people in Manchester, with over half (59%) saying it was their preferred method of payment. This was followed by mobile payment methods such as Apple Pay and Google Pay, which are how a quarter (24%) of people in the city prefer to pay, no doubt in part thanks to their ease of use and the ability to have multiple cards on one device. Only 5% of Mancunians said that cash is still their go-to option when it comes to paying, a clear indicator of the decline in physical payments.

How are payment methods changing for people in Manchester?

Almost two thirds (63%) of Manchester residents said that they have changed the way they make payments over the past year, with 31% making more digital payments using apps, contactless, or digital wallets. 17% are using cash less frequently as modern payment options become more widespread, including Buy Now, Pay Later services, which 10% of people have started using in the last year.

The rise in popularity of contactless and mobile payments can also be seen in the fact that 15% of people said that they’d previously forgotten their PIN due to their reliance on these methods, though thankfully 43% said they never forget it.

While a third (31%) of people in Manchester said that they don’t mind cash and still carry it for situations where digital payments aren’t an option, a growing number of people in the city are expressing that digital payments are more favourable. 25% think that businesses should adapt to modern payment methods but understand why some may choose not to, whilst 28% find it inconvenient when a business doesn’t accept digital payments. For a further 11% of people however, cash only businesses wouldn’t even be an option they’d consider, saying that they avoid them wherever possible and that businesses should accept all forms of payment.

Payment method concerns:

As for concerns surrounding payment methods, a third (33%) of people are worried about their reliance on technology- for example, being unable to pay if their phone dies. An additional 32% of people are concerned about security risks such as hacking, fraud, or stolen card details, while 26% worry about the privacy aspect of digital banking, such as banks and tech companies tracking your data.

The future of fintech:

Looking towards the future of personal finance and AI integration, over a third (38%) said they’d trust an AI to make small, automated payments on their behalf. While those who’d trust an AI for this purpose are outweighed by those who wouldn’t, this is still a not-insignificant amount of people who would be open to the idea. 13% would trust an AI to pay recurring expenses such as bills and subscriptions, while a surprising 15% said they’d trust an AI to make all kinds of payments for them, an indicator that there’s certainly an appetite for the technology in Manchester. On the other side of the argument, 33% of people were against the idea due to wanting to check over all payments before they occur, whilst the remaining 29% wouldn’t trust AI with their financial decisions.

The rest of the UK:

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.

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.”