A tenth of young adults shun cash and rely instead on cards and digital payments for their day-to-day spending, figures suggest.
More than one in 10 people aged between 25 and 34 used notes and coins no more than once a month last year, according to UK Finance.
The trade body for financial providers said nearly three million people rarely used cash.
But, across all age groups, cash remains the most popular way to pay.
The figures show that 6% of the UK’s adult population used cash no more than once a month last year, but this increased to more than 10% for 25 to 34-year-olds. The proportion drops to 2% for 55 to 64-year-olds.
At the opposite end of the scale, 5% of the UK adult population (2.7 million people) relied almost entirely on cash to make their day-to-day payments during 2016, UK Finance said.
This was relatively evenly spread across different age groups. However, people with lower household incomes were far more likely to rely mainly on cash compared with their more affluent counterparts.
More than half of all consumers who relied predominantly on cash during 2016 had total household incomes of less than £15,000 per year.
Cash accounted for 44% of all payments made by consumers across the UK last year.