Last year saw a 15 per cent drop in notes and coins usage, strengthened by the growing popularity of contactless cards according to a new study.

With €106.7 trillion revenue in 2017, the United Kingdom are the leading nation for cashless payments across Europe.

Ranking second in the study, conducted by merchant account and card payment fee comparison service Merchant Machine, was Germany with €55.8 trillion.

The results suggest that a 'cashless society' could be emerging in the UK. Pay for parking, which has seen a 132 per cent increase in transactions from 2017 to 2018, has been improved somewhat by the ease of contactless payment.

Read more: The UK cities using the most contactless payments

The impact of 'cashlessness' has had different affects on specific industries. More than 91 per cent of all public transport payments are noq contactless.

“The popularity and preference towards cashless payments appears evergrowing,” said Ian Wright from Merchant Machine.

“While so many are aware of the decline of cash usage and increase in card transactions, but this study helps to break down where these changes are most felt.”