UK Consumer Payment Habits

Digital Payments Are Soaring—But Usage Varies by Demographics

Report by David Morris, and Grace Broadbent  | Feb 17, 2023
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Table of Contents
Executive Summary
UK consumers set the digital payments pace for the Western world.
UK consumer demographics inform digital payment growth trends.
The UK payments opportunity is rich—and the battlefield is crowded.
Among emerging UK payment methods, contactless is the most mature.
But mobile wallets are catching on with younger consumers.
BNPL payment value share will double as older consumers play a larger role.
Crypto payments are hamstrung by market deterioration.
In the realm of traditional UK retail payment methods, debit cards dominate.
Credit card growth is driven by rising adoption and higher-income users.
Cash remains critical to financial inclusion.
What should marketers in the UK payments industry do next?
Sources
Media Gallery
About This Report
The UK is a digital payments leader, though traditional payments provide a backbone. Payment method preferences among different demographic groups are determining the winners and losers.
Topics
Payments
United Kingdom
Table of Contents
Executive Summary
UK consumers set the digital payments pace for the Western world.
UK consumer demographics inform digital payment growth trends.
The UK payments opportunity is rich—and the battlefield is crowded.
Among emerging UK payment methods, contactless is the most mature.
But mobile wallets are catching on with younger consumers.
BNPL payment value share will double as older consumers play a larger role.
Crypto payments are hamstrung by market deterioration.
In the realm of traditional UK retail payment methods, debit cards dominate.
Credit card growth is driven by rising adoption and higher-income users.
Cash remains critical to financial inclusion.
What should marketers in the UK payments industry do next?
Sources
Media Gallery

Executive Summary

UK consumers have pivoted quickly from cash to become the digital payment leaders of the Western world, with outsized usage among certain demographic groups driving the change. Identifying usage patterns among these groups will help marketers effectively tap each audience.

Scroll on to learn:

  • The size of the UK’s consumer payments opportunity
  • The major established and emerging brands fighting for share
  • Key payment methods—from crypto to credit cards—and their growth trajectory
  • Demographic trends that are driving business upheaval

Key Question: How are payment method preferences among different demographic groups influencing the shift to digital payments in the UK?

KEY STAT: Younger consumers are driving explosive buy now, pay later (BNPL) growth—part of a broader digital wave that is reshaping how UK consumers pay.

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Table of Contents

  1. Executive Summary
  2. UK consumers set the digital payments pace for the Western world.
  3. UK consumer demographics inform digital payment growth trends.
  4. The UK payments opportunity is rich—and the battlefield is crowded.
  5. Among emerging UK payment methods, contactless is the most mature.
  1. But mobile wallets are catching on with younger consumers.
  2. BNPL payment value share will double as older consumers play a larger role.
  3. Crypto payments are hamstrung by market deterioration.
  4. In the realm of traditional UK retail payment methods, debit cards dominate.
  5. Credit card growth is driven by rising adoption and higher-income users.
  1. Cash remains critical to financial inclusion.
  2. What should marketers in the UK payments industry do next?
  3. Sources
  4. Media Gallery

Charts in This Report

Share of UK Contactless Credit & Debit Card Transactions, 2019-2022 (% of total)UK Retail Ecommerce vs. Non-Ecommerce Sales Growth, 2019-2026 (% change)
UK/US Cryptocurrency Owners*, by Age, Jan 2022 (% of respondents in each group)Total UK Credit Card Retail Sales, 2017-2021 (billions and % of total retail spending)

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Download
Report
The One-Pager
Share
Table of Contents
Executive Summary
UK consumers set the digital payments pace for the Western world.
UK consumer demographics inform digital payment growth trends.
The UK payments opportunity is rich—and the battlefield is crowded.
Among emerging UK payment methods, contactless is the most mature.
But mobile wallets are catching on with younger consumers.
BNPL payment value share will double as older consumers play a larger role.
Crypto payments are hamstrung by market deterioration.
In the realm of traditional UK retail payment methods, debit cards dominate.
Credit card growth is driven by rising adoption and higher-income users.
Cash remains critical to financial inclusion.
What should marketers in the UK payments industry do next?
Sources
Media Gallery
About This Report
The UK is a digital payments leader, though traditional payments provide a backbone. Payment method preferences among different demographic groups are determining the winners and losers.
Topics
Payments
United Kingdom
Table of Contents
Executive Summary
UK consumers set the digital payments pace for the Western world.
UK consumer demographics inform digital payment growth trends.
The UK payments opportunity is rich—and the battlefield is crowded.
Among emerging UK payment methods, contactless is the most mature.
But mobile wallets are catching on with younger consumers.
BNPL payment value share will double as older consumers play a larger role.
Crypto payments are hamstrung by market deterioration.
In the realm of traditional UK retail payment methods, debit cards dominate.
Credit card growth is driven by rising adoption and higher-income users.
Cash remains critical to financial inclusion.
What should marketers in the UK payments industry do next?
Sources
Media Gallery
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authors

David Morris, and Grace Broadbent

Contributors

Melissa Rosenberg
Senior Researcher
Jaime Toplin
Senior Analyst
Daniel Van Dyke
VP, Content