So, you’re finally heading to London. You’ve got the itinerary, the raincoat (non-negotiable, honestly), and a list of pubs that look like they haven’t changed since the 1700s. But then comes the big question that trips up more people than it should: what currency is used in London?
You’d think it’s a simple "yes or no" answer, but British money is kinda quirky. If you show up with a pocket full of Euros, you’re going to have a very awkward conversation with a bus driver.
Basically, the only official currency is the British Pound Sterling (£). You’ll see it written as GBP in bank apps or on exchange boards. While London is technically in Europe, it has never used the Euro. Not before Brexit, and certainly not now in 2026.
The Pound Sterling: Not Just "The Pound"
When you’re walking around Covent Garden or grabbing a bagel in Brick Lane, you’ll hear people call it "quid." It’s the most common slang you’ll encounter. "That’ll be five quid, mate." It just means pounds. There is no plural for quid, by the way. Five quid is five quid.
The Bank of England issues the notes you’ll likely use, which come in denominations of £5, £10, £20, and £50. These are all polymer now—basically fancy plastic. They don’t tear, and they can actually survive a trip through the washing machine, which is a lifesaver if you’re clumsy like me.
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Can You Use Euros in London?
Short answer: No.
Longer answer: Sorta, but don't.
A handful of massive department stores like Harrods or Selfridges might accept Euro notes at the till because they deal with so many international tourists. But here’s the catch. They will give you a terrible exchange rate. You’ll lose money on the transaction, and any change they give you will be back in British pounds anyway.
It’s a massive hassle for the staff and a bad deal for your wallet. If you have leftover Euros from a trip to Paris, just save them or hit up a currency exchange (Bureau de Change) in the city. Just avoid the ones at Heathrow or Gatwick—the rates there are daylight robbery.
The Death of Cash in the Big Smoke
London has gone digital. Fast. Honestly, you could probably spend two weeks in the city and never touch a physical coin.
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In 2026, most Londoners rely entirely on contactless payments. Whether it’s a high-end restaurant in Mayfair or a tiny flower stall in Columbia Road, "tap and pay" is the king of the jungle.
Paying for Transport
Don’t even think about buying a paper ticket for the Tube. And definitely don’t try to give a bus driver cash—they stopped accepting it years ago.
You have three main options for getting around:
- Contactless Bank Cards: If your card has that little Wi-Fi-looking symbol, just tap it on the yellow reader at the station gates.
- Mobile Wallets: Apple Pay and Google Pay are everywhere. It’s the fastest way through the barriers.
- Oyster Cards: These are the iconic blue plastic cards. You top them up with credit. Honestly, unless your phone battery is terrible or your international bank charges huge fees, you don’t really need one anymore.
Tipping and Hidden Costs
Tipping in London isn’t like the US. It’s not a "do it or get chased down the street" situation.
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Most restaurants will add a "discretionary service charge" to your bill, usually around 12.5%. If that’s already on there, you don’t need to add anything else. You’ve already tipped. If it’s not there, 10% to 15% is the standard for good service.
In pubs? You don't tip the bartender for a pint. If you’re feeling particularly generous after a few rounds, you can say "and one for yourself," which usually means they’ll take the cost of a drink (or a pound or two) as a tip.
The Scottish and Irish Note Confusion
Here is a weird one that confuses everyone. If you’ve been up to Edinburgh or Belfast before coming to London, you might have notes that look different. Banks in Scotland and Northern Ireland issue their own pounds.
Legally, they are the same currency. In practice? Some smaller shops in London might look at a Scottish £20 note like it’s alien technology. They are supposed to accept them, but if you want to avoid a five-minute debate with a cashier, try to spend your Scottish or Irish notes before you leave those regions, or stick to card.
Practical Steps for Your Wallet
- Check your bank’s FX fees. If your home bank charges 3% every time you tap, those "small" coffees will get expensive fast. Consider a travel-friendly card like Revolut or Wise.
- Keep a "just in case" £20 note. While 99% of places take card, the occasional street performer or old-school barber might still be cash-only.
- Always pay in local currency. When a card machine asks if you want to pay in your home currency or GBP, always choose GBP. If you choose your home currency, the merchant’s bank sets the exchange rate, and it’s always worse than your own bank’s rate.
- Download your banking app. You’ll want to track your spending in real-time, especially since everything in London feels like it costs £20.
London is an expensive city, but the logistics of paying for things shouldn't be the hard part. Stick to your phone or a contactless card, keep a tiny bit of backup cash in your pocket, and you’ll blend in just like a local.