United Kingdom Payment Market Size (2024 - 2029)

UK Payment Market Analysis

The United Kingdom Payment Market size is estimated at USD 490.77 billion in 2024, and is expected to reach USD 849.64 billion by 2029, growing at a CAGR of 11.60% during the forecast period (2024-2029).

The payment services in the United Kingdom are rapidly shifting towards adopting digital payment applications, such as Paypal, Samsung Pay, Mastercard, American Express, and Shopify, to accept and transfer payments. With factors like increasing internet penetration and rapid growth in online retailing, this trend is expected to continue over the forecast period.

• As per the changes in customer behavior, buying trends, and needs, the payments market in the United Kingdom is witnessing significant changes. A few trends influencing the payments market in the United Kingdom are cashless economies, mobile banking, instant payments, digital commerce, and the growing impact of regulatory agencies. Moreover, increased awareness of electronic payments and continuously developing evolving payment infrastructure have successfully facilitated using electronic payment methods for day-to-day transactions.
• The payment market in the United Kingdom has recorded strong evolution, with new providers, platforms, and payment tools being introduced in the region. The increased usage of the internet and smartphone penetration in the region is anticipated to drive the digital payments market in the studied country significantly. The digital gift card segment is another fast-growing vertical globally. As the demand for gift cards continues to rise quarter-on-quarter, BNPL firms are looking to capitalize on the opportunity to further accelerate their growth in the United Kingdom.
• The market is witnessing mergers, acquisitions, and investments by key players as part of its strategy to improve business and their presence to reach customers and meet their requirements for various applications. For instance, In July 2022, British bank Virgin Money declared the launch of a new credit card that would enable customers to spread their payments over several months, entering the increasingly competitive buy now, pay later (BNPL) space. Also, in May 2022, Swedish buy now, pay later (BNPL) firm Treyd raised a sum of around USD 10.5 million in a Series A round. The funding would help the company expand to the U.K. and operate out of Stockholm and London.
• However, the lack of a standard legislative policy remains, especially in the case of cross-border transactions could be a major matter of concern that can limit the overall market's growth throughout the forecast period.
• The pandemic boosted the adoption of contactless payments in the U.K. With the closure of physical stores during lockdowns, consumers turned to online shopping, driving a significant increase in e-commerce transactions. This led to an increase in online payment volumes and a rise in the use of digital payment methods. Also, it has driven innovation in the payment industry, with new payment technologies and solutions being developed to meet the changing needs of consumers and businesses.

UK Payment Industry Segmentation

Payment is the transfer of money and goods in exchange for goods and services that the parties agree upon. Payment can be made through services exchanged, cash, wire transfer, cheque, credit card, and debit card.

The United Kingdom payment market is segmented by mode of payment (point of Sale [card payments, digital wallet, cash], online sale [card payments, digital wallet]), and by end-user industries (retail, entertainment, healthcare, hospitality).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.