What Money Is Used in London

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Let’s be real: the main currency in London is the contactless payment. You tap your debit card, your credit card, your phone, your watch—even your ring if you’re fancy enough. I once paid for a £2 coffee by tapping my Oyster card (London’s transit card), which is weirdly accepted at some shops now. Seriously, it feels like you could tap a teapot and it would work.

The best part? The system thinks for you. If you tap a card at a tube station, it caps your daily fare automatically. It’s like magic, except the magic charges your bank account later. And don’t ever assume a cabbie will take cash—half of them just point to a little machine and grunt “card only.”

What About Actual Cold, Hard Cash?

Yes, cash exists, but it’s treated like a museum piece. You’ll see people pulling out £50 notes at a pub and getting a look that says, “Are you trying to buy the bar?” Those big notes are suspect; many places flat-out refuse them because of forgeries. The £5 and £10 notes are safe, but try to spend a £20 note on a bottle of water and the cashier will sigh like you’ve just asked them to solve a Rubik’s Cube.

Coins, however, are annoyingly useful. You still need them for some launderettes, car park meters, and the occasional market stall that doesn’t take cards. The worst is the £2 coin—heavy, thick, and it always rolls under the seat when you drop it. But if you’re a tourist, keep a few in your pocket for the tube, where the ticket machines sometimes go into a coma.

Everything You Need to Know About London Money & Currency Exchange