The 10th edition of the Worldpay® Global Payments Report (GPR) reveals that over the past ten years, technological advancements, consumer preferences, and economic changes have reshaped the payment landscape in the UK.
Customers in the UK pay in a wider variety of ways than before. Despite the dominance of digital payments, with digital wallets expected to account for 58% of all online spending by 2030, traditional methods are still used in the fragmented UK market.
An extensive yearly study, the GPR offers important insights into the patterns that have shaped payments’ past, present, and future. This year’s report examines ten years of data to show how payment habits have changed dramatically since its inception, as well as the trends that will influence payments through 2030.
Cash use has significantly decreased in the UK over the last ten years; between 2014 and 2024, its percentage of point-of-sale (POS) spending fell from 32% to 10%, representing £128 billion in in-store transactions. The COVID-19 epidemic accelerated this trend by speeding up the use of digital payment systems. The rate at which cash is declining has stabilised despite this. It continues to play a significant role in UK payments and is expected to generate £109 billion (8% of in-store expenditure) by 2030. The growth of digital wallets has been a major factor in the UK’s spike in digital payments.
Digital wallet-based e-commerce transactions doubled in value between 2014 and 2024, generating £108 billion in spending in the previous year. The UK now ranks third in Europe for online digital wallet use, behind Denmark and Norway, thanks to its quick acceptance. Digital wallets have had impressive growth at POS, rising from 1% to 18% of expenditure in the same time frame. This trend is expected to continue; by 2030, when digital wallets are expected to account for £447 billion in in-store spending, the percentage is expected to increase to 33%.
This pattern is complemented by the buy now, pay later (BNPL) trend, which has rapidly expanded from less than 1% of online spending in 2014 to 7% in 2024. By 2030, it is anticipated that BNPL will account for £33 billion of UK internet spending. This illustrates a larger trend in consumer buying habits towards more adaptable and electronic payment methods.
Worldpay’s General Manager for EMEA, Pete Wickes, stated: “In an era where consumer choice is king, the UK’s payment landscape has become a sophisticated network of diverse options, reflecting the nuanced demands of its users. It reflects a society that values the security and familiarity of traditional payment methods, while simultaneously embracing the efficiency and enhanced experience offered by emerging technologies.”
BrandSpur digital news platform reports that UK consumers are still devoted to cards despite the growth of digital alternatives.
In 2024, cards accounted for £1 trillion in total in-store and online expenditure. Furthermore, according to Worldpay’s Global Payments Report survey, 63% of digital wallets in the UK are funded by cards, highlighting their ongoing significance in the country’s payment infrastructure even as digital ways proliferate. Debit cards are still widely used in the UK, especially in light of the continuous economic difficulties.
Budgeting was cited by over a quarter of UK customers as a reason for using debit cards in-store, and by nearly a third for online purchases, demonstrating that consumers are spending within their means.
In 2024, debit and prepaid cards accounted for 46% of in-store spending, nearly twice as much as credit cards (24% at POS).
Continuing, Wickes went on to say: “Worldpay champions a diverse and dynamic payments landscape, recognising that payment choice enhances the customer journey, supports merchant growth, and powers commerce. As we witness the convergence of the old and the new, merchants should be prepared to leverage this dynamic ecosystem by offering payment options that are both responsive to and anticipatory of their customer’s behaviours and preferences.”
