London Currency: What You Need to Know About Money in the City

The London currency, the official money used in the United Kingdom, also known as the British pound or GBP. Also known as sterling, it’s the only legal tender you’ll need for everything from Tube fares to pub bills in the city. Whether you’re visiting for a weekend or living here long-term, understanding how money works in London saves you time, stress, and extra fees.

You won’t find euros or US dollars accepted in most places—even in tourist hotspots. Stick to British pound (GBP), the currency used across England, including all of London. Notes come in £5, £10, £20, and £50 denominations, and coins range from 1p to £2. You’ll see Scottish and Northern Irish notes too, but they’re rare outside their regions. Most Londoners and businesses treat them the same as English notes, but some small shops might hesitate—just ask if you’re unsure.

Card payments dominate here. Almost every shop, café, and transport kiosk takes contactless—just tap your phone or card. The limit is £100 per transaction, and you won’t need to enter a PIN for most purchases under that. If you’re using a foreign card, watch out for dynamic currency conversion scams at ATMs or terminals. Always choose to pay in GBP, not your home currency. Your bank will give you a better rate than the merchant.

For those who still carry cash, ATMs are everywhere—but not all are free. Look for machines run by your own bank or those labeled "no fee." Many Tesco, Sainsbury’s, and Boots locations have free cash machines. Avoid standalone ATMs in tourist areas like Piccadilly Circus—they often charge £2.50 or more per withdrawal. And never hand your card to someone who walks away with it to process a payment. That’s a common scam.

Transport is a big part of daily spending. Oyster cards and contactless bank cards work the same on Tube, buses, and trains. The daily fare cap means you won’t pay more than a certain amount, even if you take five trips. If you’re staying a few days, load your contactless card before you go—no need to buy a separate Oyster unless you’re under 18 or want a discount. Refunds for overcharges are easy to claim online through TfL’s website.

When it comes to tipping, it’s not mandatory. In restaurants, a service charge might be added automatically—check the bill. If it’s not there, leaving 10-15% is polite but not expected. Taxis? Round up to the nearest pound. Coffee shops? Just say thanks. You’re not expected to tip in pubs, at street markets, or for takeaway food.

London’s economy runs on digital and cash—but digital wins. You can pay for your dim sum in Chinatown, your vegan donut in Peckham, or your ticket to Mamma Mia! with just a tap. Even the smallest market stall has a QR code or contactless reader. If you’re used to carrying wallets full of cash, you’ll adapt fast. But keep a little cash on hand for emergencies: some old pubs, church donations, or tiny independent shops still prefer it.

And if you’re exchanging money, skip the airport kiosks. They’re the worst deal in town. Use a good bank or a currency exchange in the city center like Travelex in Covent Garden—but even then, compare rates online first. Many people now use Wise or Revolut to load GBP before they land. No fees, real exchange rates, and you can pay directly from your phone.

What you’ll find below are real, practical guides from people who live and spend in London every day. From budgeting for food and transport to spotting hidden fees on your card, these posts cut through the noise. You won’t find fluff here—just what works, what doesn’t, and how to make your money stretch without missing out.