Raynor de Best
Content expert covering payments and (crypto)currencies
Digital payments landscape in the United Kingdom (UK) - statistics & facts
Digital payments in the UK are characterized by a heavy use of cards, and a rapid adoption of wallets. Cards remained king in the country's payments landscape, though. Their dominance is noticeable in POS payments, especially, due to the substantial integration of contactless (tap to pay) technology. What digital payment characteristics and payment trends are noteworthy for the United Kingdom?
Digital wallets are growing in importance in the United Kingdom. The main question in 2025 and beyond, however, is whether it can establish ownership over its own payment infrastructure, away from foreign brands or entities.
Foreign brands and domestic processors
An important characteristic of payments in the UK is how few domestic providers there are in the country. When asked which payment brand was used in stores or restaurants with a mobile device, most UK respondents replied with U.S. brands over domestic alternatives. This is also true for payment cards, with Visa being the country's largest payment card scheme for several years in a row. That said, some of Europe's largest merchant acquirers come from the UK, such as Worldpay and Barclays.Contactless cards vs. wallets
Contactless (debit) card transactions are very popular in the UK, growing year by year since 2015. The Financial Conduct Authority (FCA) estimated that roughly 93 percent of all card transactions under 100 pounds are contactless. However, this created a clash with mobile wallets such as Apple Pay: Contactless cards have a 100 pound limit, whereas Apple Pay and Google Pay do not. This is significant, as over half of the UK population ages 16 to 24 had a mobile payment registration. This limit will be lifted, further adding to overall contactless payment spending in the country.A push for A2A
The UK government announced in its National Payments Vision report - in November 2024 - that the development of seamless account-to-account payments was "crucial". The United Kingdom does not rank among Europe's top countries for A2A - domestically developed bank transfer-based payment methods. Top A2A brands in Europe include, among others, BLIK in Poland and iDEAL in the Netherlands. The government emphasized potential cost savings for merchant, by having a wider variety of payment options - further emphasizing the reliance of the UK on foreign brands. It hoped that further expansion of Open Banking might open the doors for A2A in the UK.Digital wallets are growing in importance in the United Kingdom. The main question in 2025 and beyond, however, is whether it can establish ownership over its own payment infrastructure, away from foreign brands or entities.
