UK payments forecast
Payments UK just released its annual report on the 2015 UK payments landscape and its forecast for 2025. The 2016 UK Payment Markets report highlights UK consumers’ paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More preferences and provides an overview of the trends that might affect different payment instruments including cashMoney in physical form such as banknotes and coins. More, cards, cheques and electronic payments over the next 10 years.
The figures demonstrate that 72,514 payments were made per minute in the UK in 2015, representing a total of 38 billion transactions over the whole year. Cash accounted for the majority of payments (45%), followed by debit cards and direct debit. The number of payments per year is expected to increase to 42 billion by 2025, and cash operations should decline to 27%.
Number of payments made every minute in the UK:
Graph: 2016 UK Payment Markets
Conversely, the proportion of debit card transactions should rise from 26% in 2015 to 41% in 2025. In the UK, 9 out of 10 adults own a debit card. Moreover, studies indicate that an increasing number of retailers and small stores are now accepting cards, a factor that also contributed to the rise. According to the report, debit cards payments should overtake those made in cash by 2021.
Cash remained the preferred payment methodSee Payment instrument. More in 2015, but its use is set to decrease slightly over the coming years notably because of the proliferation of alternative options such as contactless cards and mobile applications. Nevertheless, 2.2 million consumers relied mainly on cash to manage their spending in 2015.
Here are key figures of UK payment volumes for 2015 and 2025:
Graph: 2016 UK Payment Markets
To read the summary of 2016 UK Payment Markets report, please click here.