Planning a trip to London and wondering what currency is used, how to pay, or whether it is better to exchange your euros before you leave? This guide covers everything you need to know about the pound sterling (GBP): banknotes and coins in circulation, withdrawals, contactless payments, conversion, bank fees, and practical tips to avoid unnecessary fees during your trip!
- What currency is used in England?
- What do pound coins and banknotes look like?
- How to pay in London: cash or card?
- Withdrawing cash or exchanging euros?
- How to avoid bank fees in London?
- How much money should you exchange for a stay in London?
- Frequently asked questions about paying in London
- Key things to remember about money in London
What currency is used in England?
The official currency of England – and throughout the United Kingdom – is the pound sterling, also commonly referred to as the British pound. Its symbol is £ and its international code is GBP.
Unlike some European countries, the United Kingdom never adopted the euro, even when it was part of the European Union. The pound sterling remains the currency used throughout England, Scotland, Wales, and Northern Ireland.
However, you may notice one difference if you travel through different regions of the United Kingdom: the banknotes can look different depending on whether they were issued by the Bank of England, the Bank of Scotland, or other regional banks. They are all valid throughout the UK, but some shopkeepers may be more hesitant to accept Scottish or Northern Irish notes if they are unfamiliar with them. They remain legal currency and can usually be exchanged at banks if needed.
Keep in mind that the pound sterling is not accepted in eurozone countries.
GBP ⇄ EUR Converter (Updated Exchange Rate)
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What do pound coins and banknotes look like?
The pound sterling is divided into 100 pence (singular: one penny). In British English, banknotes are usually called notes. You will usually see the price of an item displayed as "£1.50," which means 1 pound and 50 pence.
As for banknotes, all denominations are now made from more durable and secure polymer. They feature well-known historical figures:
- £5: statesman Winston Churchill
- £10: novelist Jane Austen
- £20: painter J.M.W. Turner
- £50: mathematician Alan Turing
Until recently, all banknotes showed the face of Queen Elizabeth II on the front. But since 2024, new notes featuring King Charles III have gradually entered circulation. The old banknotes remain valid until they are officially withdrawn from circulation.
Common coin denominations are: 1p, 2p, 5p, 10p, 20p, 50p, as well as £1 and £2. The £1 coin was completely redesigned in 2017: it now has 12 sides and a two-tone design (gold-colored edge and silver-colored center), which makes it harder to counterfeit.
If you still have any old round £1 coins, they have not been accepted in shops since 2017.
Here are a few examples of the coins and banknotes currently in circulation:
£50 note (Alan Turing)
£20 note (J.M.W. Turner)
£10 note (Jane Austen)
£5 note (Sir Winston Churchill)
Coins (from left to right): £2, £1, 50 pence, 20 pence.
Coins (from left to right): 10 pence, 5 pence, 2 pence, 1 penny.
How to pay in London: cash or card?
In London, card payments are the norm. Most shops, museums, transportation services, and restaurants accept card payments, and some even refuse cash altogether (you may see "cashless" signs at the counter, for example). London is one of Europe's most cashless cities.
Contactless payments are especially common in the United Kingdom. You just need to hold your card near the terminal to pay (up to £100 depending on the current limits), without entering a PIN. It is fast, secure, and works with most modern French debit and credit cards.
That said, it is still worth carrying a small amount of cash, especially for:
- leaving a tip in a pub or traditional restaurant,
- paying for public toilets in certain stations or tourist sites,
- buying a snack at a street market or from a food stall,
- using a luggage locker,
- or simply in case of a temporary problem with your card.
Tip: Before you leave, check your card's foreign transaction fees, limits, and security settings, and remember to activate international payments in your banking app if necessary.
And what about smartphone payments?
In London, it is completely normal to pay with Apple Pay or Google Pay, whether for a coffee, a tube ticket, or museum admission. You just need to hold your phone or smartwatch near the payment terminal to complete the payment.
These options are convenient if you are traveling light and would prefer not to use your physical card too often.
Travelers also use bank cards with no foreign transaction fees, such as those offered by Revolut, Wise or N26. They let you pay in multiple currencies (including pounds sterling) with no conversion fees, and may also include fee-free ATM withdrawals up to a monthly limit.
Withdrawing cash or exchanging euros?
You are heading to London and wondering whether to withdraw cash after you arrive or exchange euros before your trip? Both can work, but the fees vary considerably depending on your bank and the method you use. Here's how to get pounds while keeping fees to a minimum.
Withdrawing cash in London: convenient but sometimes expensive
In the United Kingdom, ATMs are also commonly called cashpoints. You will find them in banks, stations, shopping centers, and even in some shops.
They are easy to use and often multilingual (French is sometimes available on the screen). Insert your card, enter your PIN, choose the amount in pounds sterling… and withdraw your cash.
Note: most banks charge withdrawal fees outside the eurozone, typically combining a fixed fee (€2 to €4, approximately $2.20 to $4.30 / £1.70 to £3.40) with a percentage of the amount withdrawn (generally around 2.5%).
Tip: Some banks have agreements to reduce these fees. For example, BNP Paribas participates in the Global Alliance network with Barclays in the United Kingdom. Withdrawals from Barclays cash machines can be fee-free for some BNP customers. Check the details with your bank before you leave.
Refuse automatic conversion (DCC)
When you withdraw cash or pay by card, the ATM or payment terminal might offer to convert the transaction into euros immediately. This service is called Dynamic Currency Conversion (DCC).
It may seem convenient, but in reality the exchange rate is often poor, with hidden fees, and the total cost can be higher than letting your bank handle the conversion.
To avoid extra fees, decline conversion to euros and choose to pay or withdraw in pounds sterling (GBP).
Exchanging euros at a currency exchange office
You can also exchange euros for pounds sterling at a currency exchange office, whether in France or in London. However, watch out for fees and often unfavorable exchange rates.
At currency exchange bureaus, rates are usually displayed on boards titled "Buy / Sell":
- We sell: the rate the bureau charges when selling you pounds.
- We buy: the rate the bureau offers when buying pounds from you.
Avoid currency exchange offices in train stations, airports, and tourist areas: their commissions are often higher. Compare several providers, and check whether any fixed fees are added to the displayed rate.
What's the best option?
Each option has its advantages and disadvantages, but here is what I would recommend for a typical trip to London:
- If you have a standard bank card, the simplest choice is to make one modest ATM withdrawal after you arrive, declining conversion to euros. This limits fixed fees.
- If you have a card with no foreign transaction fees (like Revolut, N26, Wise…), use it as much as possible, both for contactless payments and for withdrawals.
- Avoid exchange offices unless you really need cash, especially in tourist areas or airports.
- Keep a bit of cash for small purchases or situations where cards are not accepted.
How to avoid bank fees in London?
To reduce fees on payments or withdrawals in London, some bank cards are specifically designed for international travel. They help reduce or avoid conversion fees and the higher fees charged by traditional banks — as long as you understand their limits and fee structure.
Popular travel cards and neobanks
- Revolut: the Standard plan offers fee-free payments with no exchange charges up to a monthly exchange limit (£1000 at the time of writing), then a small commission may apply. Withdrawals are free up to a monthly limit (on the Standard plan, £200 or 5 withdrawals, whichever comes first), then fees apply.
- Wise: low-cost currency conversion with a small commission, and up to £200 of free withdrawals per month. Beyond that, fees (about 1.75% + £0.50) apply.
- N26: payments in foreign currencies are often free even on the Standard plan (no fees, N26 applies its exchange rate without an additional card-payment fee), but withdrawal fees outside the euro area (1.7%) may apply. Premium plans allow free withdrawals.
In short:
- Most neobanks offer free withdrawals up to a certain monthly limit and lower card-payment fees than many traditional banks outside the euro area;
- The fees charged, however, depend on the type of bank card you have, with the most generous fee-free allowances usually reserved for premium cards.
How much money should you exchange for a stay in London?
In London, most transactions are now made with debit or credit cards or smartphones. So you can limit the amount of cash you exchange and carry only a small amount for tips, public toilets, small purchases at markets, or emergencies.
How much you need depends on your travel style, the length of your stay, and especially the expenses you have already paid for (accommodation, transportation, activities).
Estimated daily budget for London
Here are some rough daily budgets per person for a stay in London (excluding travel to London and accommodation), in 2026:
| Type of stay | Budget per day | Description |
|---|---|---|
| Budget | £35–50 | Grab-and-go meals, free museums, public transport |
| Comfort | £60–120 | Simple restaurants, some paid visits, light shopping |
| High-end | £120 and up | Good restaurants, tourist attractions, cultural outings or shows |
These amounts can be paid entirely by bank card if you have a card with no foreign transaction fees.
Book major expenses in advance
Major expenses (accommodation, train or plane tickets, tourist attractions) can be booked online in advance. Booking ahead can help you:
- get better prices than booking after you arrive;
- avoid additional currency conversion at your destination;
- limit the need to exchange money or withdraw cash once you are in London.
Personally, I usually use Booking.com for accommodation bookings, or sometimes I book directly on hotel websites when the direct rate is better.
As for sightseeing, I book many attractions through GetYourGuide: it lets you manage all your tickets in one app, benefit from flexible booking terms (free cancellation up to 24 hours in advance, for example), and get invoices (very handy if your employer reimburses leisure expenses!).
Tips to keep your expenses down once you're there
London has a reputation for being an expensive city. That is true for some expenses (accommodation, Tube, etc.) but London can still be manageable on a smaller budget if you plan carefully:
- Oyster card or contactless card: for transport (bus, Tube, Overground, self-service bikes), the daily cap automatically limits how much you pay each day.
- Free national museums: many major museums offer free admission, including the British Museum, National Gallery, Tate Modern, and Natural History Museum.
- Parks and free viewpoints: Hyde Park, Primrose Hill, Greenwich Park, Sky Garden or Horizon 22, The Garden at 120, The Lookout at 8 Bishopsgate (skyscrapers with panoramic views, some requiring advance booking).
- Street food markets: Borough Market, Camden Market, Spitalfields… are good places to find meals for around £8–12 (about $10–15 or £8–12).
I have compiled lots of additional tips here to help you visit London on a budget.
So… how much should you exchange?
If you have a bank card that works for payments in pounds sterling without fees, there is no need to exchange large amounts. Around £20 to £40 (about $25–50 or £20–40) in cash is usually enough for your entire stay, just in case.
You can pay for everything else by card or smartphone payment, which helps you avoid exchange bureau fees and repeated ATM withdrawal fees.
Frequently asked questions about paying in London
Key things to remember about money in London
The pound sterling (GBP) is still the only currency in circulation in London and throughout the United Kingdom. Although banknotes and coins have changed in recent years, bank cards are now the most commonly used payment method.
To avoid bank fees, you might want to get a card with low or no foreign transaction fees (such as Revolut, Wise, or N26), and keep cash withdrawals to a minimum. With a bit of preparation, you will be able to enjoy your stay in London without being caught out by unnecessary fees.
To plan your trip, you can take a look at my other London guides! You will find tips for enjoying the city, as well as ideas for things to do and places to visit for every budget.
