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United Kingdom Real Time Payments Market Size (2024 - 2029)

The United Kingdom real-time payments market is poised for significant growth, driven by the increasing consumer demand for accessible and cost-effective payment solutions. Despite its early adoption through the Faster Payments scheme, the market's expansion has been slower compared to developing regions. The economic advantages of real-time payments remain largely untapped, with potential benefits that could substantially impact the country's GDP. Traditional payment methods, particularly cards, still dominate, even though real-time options are readily available and cheaper. The COVID-19 pandemic highlighted the value of real-time payments, showcasing their cost-saving benefits for consumers and businesses alike.

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Market Size of United Kingdom Real Time Payments Industry

United Kingdom Real Time Payments Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 11.45 %
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

UK Real Time Payments Market Analysis

The UK real-time payments market is anticipated to grow with a CAGR of 11.48% on the back of increasing demand for easy and cheap payment options by consumers to access real-time payments. Real-time payments have been possible in the UK since 2008 under the Faster Payments scheme. However, despite the significant head start, the market's development has been markedly slower than those in the developing world.

The UK recorded 3.4 billion real-time transactions in 2021, which resulted in an estimated cost savings of USD 950 million for businesses and consumers. This helped unlock USD 3.2 billion of additional economic output, representing 0.10% of the country's GDP.

With real-time transactions rising to 5.8 billion in 2026, net savings for consumers and businesses are forecast to climb to USD 1.8 billion. That would help to generate an additional USD 3.8 billion of economic output, equivalent to 0.11% of the country's forecasted GDP. That means the potential economic benefits of real-time payments remain untapped.

According to the Cebr, the theoretical impact of all charges being real-time could add 2.7% to formal GDP by 2026. Payments in the UK are still very much tied to traditional tools - especially cards - despite being easy and cheap for consumers to access real-time payments.

During the COVID-19 pandemic, a relatively strong real-time payments mix share (9.2% of all transactions), in 2021, net benefits for consumers and businesses of real-time payments hit USD 950 million in the United Kingdom.

The largest component of this was net savings through the transaction costs within the payments system. On a per-transaction basis, real-time payments in the UK currently have a 14.1% lower average payments cost than the weighted average mix of all non-real-time prices.

UK Real Time Payments Industry Segmentation

Real-time payments are instant or immediate payments and are defined by the Euro Retail Payments Board (ERPB) as electronic retail payment solutions that are available 24/7/365. Immediate payments enable businesses and consumers to make and receive payments in real-time, providing convenience, speed, and faster availability of funds.

The UK real-time payments market is Segmented by Transaction Types (P2B, B2B, and P2P)

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United Kingdom Real Time Payments Market Size Summary

The United Kingdom's real-time payments market is poised for significant growth, driven by an increasing consumer demand for convenient and cost-effective payment solutions. Despite the introduction of the Faster Payments scheme in 2008, the market's expansion has been slower compared to developing regions. The shift in consumer behavior towards digital payment methods, accelerated by the COVID-19 pandemic, has further fueled this growth. The pandemic led to a permanent change in payment habits, with a notable decline in cash usage and a rise in contactless, online, and mobile wallet transactions. This shift has made real-time payments more attractive, as they offer lower transaction costs and faster processing times, contributing to economic savings and output.

The market is experiencing a surge in investment and innovation, with new entrants and partnerships aiming to enhance product offerings. The adoption of mobile payment solutions like Apple Pay, Google Pay, and Samsung Pay has been particularly strong among younger demographics, indicating a shift towards digital-first payment strategies. As the market continues to evolve, traditional payment methods such as cards remain prevalent, but the trend towards real-time and mobile payments is expected to gain momentum. This growth trajectory presents both opportunities and challenges, as service providers strive to capture market share in an increasingly fragmented landscape.

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United Kingdom Real Time Payments Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Evolution of the payments landscape in the United Kingdom

    4. 1.4 Key market trends pertaining to the growth of cashless transaction in the United Kingdom

    5. 1.5 Impact of COVID-19 on the payments market in the United Kingdom

  2. 2. Market Segmentation

    1. 2.1 By Type of Payment

      1. 2.1.1 P2P

      2. 2.1.2 P2B

United Kingdom Real Time Payments Market Size FAQs

The United Kingdom Real Time Payments Market is projected to register a CAGR of 11.45% during the forecast period (2024-2029)

Apple Inc. (Apple Pay), Google LLC (Google Pay), Samsung Electronics Ltd. (Samsung Pay), VISA Inc.​ and Mastercard Inc. are the major companies operating in the United Kingdom Real Time Payments Market.

United Kingdom Real Time Payments Report Snapshots

United Kingdom Real Time Payments Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)