Payments made with cash rose for the first time in a decade last year as consumers struggled with rising prices.
But the number is still dwarfed by debit card use which accounted for half of all payments, its highest ever level.
Consumers often say they find it easier to manage their money using cash.
However UK Finance, which compiled the data, said it expected cash use to decline over the coming years, once the current financial squeeze has eased.
Even during cost of living pressures and the emergence from lockdowns, it said nearly 22 million people only used cash only once a month or not at all last year. That compares with just under one million who mainly used cash.