Have We Finally Tapped out the PIN? New British Consumer Payment Habits

The way British consumers pay is changing fast. While chip and PIN once dominated everyday transactions, contactless cards and digital wallets are now becoming the default at tills across the UK, reshaping expectations for both customers and businesses.

Our latest research shows that 69% of UK consumers now rely primarily on contactless payments, whether through card or a digital wallet. In contrast, only 16% still default to chip and PIN for in-store purchases. Cash also continues to play a role for some Brits, accounting for around 14% of transactions, but even that is steadily declining. Notably, one in ten consumers now describe themselves as “wallet free”, only using their phone or watch to pay.

What we are seeing is an overall change in mindset. When a technology makes life easier, people quickly come to expect it.

Convenience has become non-negotiable

Contactless payments offer something modern consumers value highly; speed without effort. A quick tap feels frictionless compared to inserting a card and keying in a code. In busy shops, cafes, or bars, those small moments add up, for customers and staff alike.

This expectation of ease now cuts across generations more evenly than many businesses assume. While younger consumers are often seen as the drivers of digital behaviour, our research highlights that the gap is actually narrowing. Nearly three in ten Gen Z consumers admit they struggle to remember their PIN or have forgotten it entirely. Additionally, one in five baby boomers report facing the same issue.

Older generations may still carry physical cards, but even they are gradually gravitating towards tap-to-pay when it’s available. Habit is giving way to convenience, and once that happens, it’s difficult to reverse.

Speed, simplicity and trust

Nearly half of British consumers say they would be happy to abandon PINs altogether if it meant faster checkouts, provided they still felt protected. Contactless payments and mobile wallets now rely on advanced security features like biometric authentication, for example. This means payment details are never fully shared during a transaction, and access is tied to the individual user. In many cases, these protections are stronger than those associated with traditional card-and-PIN payments, which can be vulnerable to skimming or stolen codes.

The security built into mobile wallets and contactless technology reduces the risk of fraud, while still providing the instant, seamless experience consumers now expect.

What this means at the till

For retailers, especially small and medium-sized businesses, the decline of the PIN has very real, practical consequences. Faster transactions mean shorter queues, smoother service and less friction at peak times. In sectors like hospitality and retail, where margins are tight and customer experience is everything, those gains matter, but keeping pace with changing habits also means offering choice.

As tap-to-pay thresholds continue to rise, more everyday purchases can now be completed in a single, fluid transaction. For staff, that means fewer interruptions and less time spent managing payment issues, and for customers, it removes yet another moment of hesitation at the till.

While contactless dominates, not every customer pays the same way, so inclusivity remains important for businesses. The most resilient businesses are those that support multiple payment options while making the most popular ones easy and reliable.

The future of everyday payments

This shift raises broader industry questions as payment limits, authentication rules and regulatory frameworks were largely designed around a world where PINs were central. As contactless becomes the norm, it’s worth asking whether those rules and the technology most businesses rely on still reflect how people actually pay.

The PIN isn’t about to disappear entirely, there will always be scenarios where additional verification is needed, and some consumers will continue to prefer more familiar methods. However, its role in everyday spending is undeniably shrinking and it is being replaced by a payment experience built around ease, speed, and confidence.

For businesses, banks, and policymakers, the message is straightforward. When consumers see clear value, habits can change quickly. As the UK’s payments landscape continues to evolve, the businesses that understand these behavioural shifts and respond early will be the ones best positioned to keep customers coming back.