Handling Money in the UK — Pounds, Cards, Contactless & Mobile Payments
The UK is highly digital, with cards and contactless payments widely accepted. Cash is still handy for small shops,
markets, and pubs outside big cities. This guide covers currency basics, using ATMs, contactless/mobile payments,
typical costs, tipping etiquette, and how to keep your money safe while traveling.
Currency Basics
The UK uses the British Pound Sterling (£, GBP). Notes in circulation: £5, £10, £20, £50. Coins: 1p–50p, £1, £2.
Prices typically include VAT. Cards are accepted almost everywhere; small shops or markets may prefer cash.
Keep some £5–£20 notes for tipping, public toilets, and small purchases.
Good to Carry
One main debit/credit card + one backup
£20–£50 in small notes for daily use
ID for card verification or currency exchange
Where Cards Work
Hotels, restaurants, supermarkets, and most stores
Transport: Tube, buses, taxis (contactless)
Tour operators, attractions, apps
Where Cash Wins
Street markets, small cafés, pubs outside big cities
Charity donations, tips for porters, car park meters
Keep cash separate from your cards for safety, e.g., one wallet in your bag, one in a money belt.
Cards, ATMs & Currency Exchange
ATMs (cash machines) are common in cities and towns. Most accept international Visa/Mastercard. Notify your bank
before traveling. Avoid standalone machines late at night. Exchange rates at banks or post offices are fair; airport
counters are convenient but slightly worse.
ATM tips: Use bank-located machines, cover your PIN, check receipts.
Fees: Some cards charge foreign transaction fees; withdraw in larger amounts to reduce costs.
Cash exchange: Compare rates; always count notes; keep the receipt.
Contactless cards work almost everywhere; Apple/Google Pay is widely accepted.
Contactless & Mobile Payments
Tap-to-pay with contactless cards, Apple Pay, or Google Pay is standard. Transport systems like London’s Tube and buses
accept contactless cards. Apps for taxis, food delivery, and tickets also accept mobile wallets.
Check your bank for contactless limits (£100–£150 typical)
Always verify the amount before authorizing payment
Keep a small cash backup for places that don’t take cards
Typical Costs in the UK
Daily costs vary by city and activity. London is pricier; smaller towns are cheaper.
Item
Budget
Mid-Range
Notes
Hotel per night
£50–£100
£120–£250
City center vs outskirts
Meal per person
£10–£20
£25–£50
Pub food vs sit-down restaurants
Tea/Coffee
£2–£4
£4–£6
Café vs specialty chains
Bus/Tube ticket
£1.50–£3
£4–£8
Zone-based fares, contactless cheaper
Train intercity (1st/2nd class)
£15–£40
£50–£100
Book early for discounts
SIM & data (30 days)
£10–£20
—
Top-ups in shops or online
Tour guide (half day)
£50–£100
£100–£200
Confirm inclusions
Attractions
£5–£20
£20–£50
Castles, museums, galleries
Tipping & Etiquette
Tipping is appreciated but not always expected. Restaurants with service charge need no extra tip; otherwise
10–15% is standard. Round up fares for taxis. Hotel porters may get £1–£2 per bag. Bargaining is not typical
except in markets.
Money Safety & Common Pitfalls
The UK is generally safe. Use a slim wallet, hotel safe, and cross-body bag. Don’t leave cash or cards visible
in public.
Card safety: Avoid letting card out of sight.
ATM precautions: Use machines in banks; shield PIN.
Receipts: Keep receipts for large purchases or exchanges.
If a card fails or is double-charged, keep proof and contact your bank immediately.
Daily Money Strategy
Plan daily spend for food, transport, and tickets. Keep small notes in front, cards deeper. Track expenses via app
or phone notes. Split costs among friends using contactless or apps.
If you're staying longer in the UK, opening a local bank account can save fees. Major banks like HSBC, Barclays, Lloyds, and NatWest offer options for internationals.
Bring passport, visa/residence proof, and address verification.
Some banks offer prepaid travel cards for short stays.
Online banking apps make transfers, bill payments, and budgeting easy.
Compare exchange rates and fees before choosing a bank.
Budgeting Tools & Apps
Managing money on the go is easier with apps. Track spending, split bills, and monitor currency rates.
Monzo / Starling: UK-based apps with contactless cards and real-time alerts.
Revolut / Wise: Great for international payments and favorable exchange rates.
XE Currency / Currency Converter: Live exchange rates for quick conversions.
Splitwise: Share costs with friends or roommates.
Most apps require internet access, so ensure your SIM/data plan works in the UK.
Budgeting Tips for Longer Stays
Use weekly or monthly budgeting apps to track recurring costs.
Buy grocery store loyalty cards (Tesco Clubcard, Sainsbury’s Nectar) for discounts.
Consider public transport passes instead of single tickets for frequent travel.
Shop at local markets for fresh produce at lower prices than supermarkets.
Plan ahead for peak seasons to avoid inflated prices.
Emergency Money & Lost Card Advice
Unexpected situations can occur, so always have backup plans.
Keep a list of your bank’s international helpline numbers separate from your wallet.
Store one card and some emergency cash in a hotel safe.
Report lost or stolen cards immediately to block unauthorized transactions.
Consider travel insurance that covers cash and card theft.
Avoid carrying large amounts of cash. UK police advise using cards for safety.
Payment & Currency Hacks
Use contactless or mobile payments to avoid foreign transaction fees.
Withdraw larger sums from ATMs to reduce per-transaction fees.
Use cashback apps for groceries and shopping (e.g., TopCashback, Quidco).
Pay in GBP when using a card abroad to avoid dynamic currency conversion fees.
Small daily hacks can save up to 10–15% on incidental expenses.
Quick Tips for Money in the UK
Check contactless limit per transaction (usually £100–£150).
Carry one main card and one backup in separate locations.
Use bank-located ATMs over street machines at night.
Keep a small emergency cash stash in GBP.
Download apps for budget tracking, transport, and currency conversion.
Money & Payments — FAQs
Cards and contactless payments are widely accepted. Keep £20–£50 cash for markets or small pubs outside cities.
Use ATMs at banks or indoors. Cover PIN, keep receipts, avoid street machines at night.
10–15% if no service charge; round up taxi fares; hotel porters £1–£2 per bag.
Apple Pay, Google Pay, and contactless cards work almost everywhere, including transport, taxis, and apps.