Most popular UK payment methods 2021
Some call 2020 the year of crisis and financial instability. But for many companies, 2020 was also a year of great opportunities.
All the companies that were able to adjust to the new conditions won the battle for customers. All of this is well known to companies in the United Kingdom.
While even in 2019, 87% of Britons were actively shopping for goods and ordering services online, you can imagine what happened after the pandemic began. The UK e-commerce market has simply exploded!
Purchases using mobile devices accounted for 55% of all Internet spending by UK residents. These figures are many times higher than those of Germany and other developed European countries.
Already today, shopping with the help of various mobile applications claims to be the most popular in the UK among other methods of online shopping. Today, 63% of all Britons use such apps.
If your company is targeting the UK market, you simply have to be aware of popular UK payment methods.
UK online payment methods
It’s not hard to guess that, just like in other developed countries, credit and debit cards have been and remain the main way to pay online in the UK. They account for 53% of all online purchases in the UK.
And it all started back in the 1990s, when PayZone, one of the UK’s earliest payment companies, did everything it could to make cards in demand for online payments across the country. Specifically, this firm leased payment terminals and other important equipment for accepting online payments to vendors. Surprisingly, even today, this firm offers customers a variety of innovative solutions, such as pay-by-phone parking and other interesting offerings.
Many inhabitants of Great Britain admit that every year they more and more like to make contactless payment as it is simple and very convenient. Many residents who have come to like contactless payment use their cell phones and actively use payment cards.
Guess which digital wallet is the most popular in the UK. Of course, it’s PayPal. But it is worth noting that other strong and well-known providers of payment services are not going to give way to the leading payment system.
They were greatly helped by the Open Banking initiative, which back in 2018 made it easier for fintech companies to obtain information about users. This information, in particular, is collected by institutional banks.
One of the least popular ways to pay, not just in the UK, but around the world. Today, during the pandemic, almost no one uses cash to pay, but don’t think of it as being too popular until 2020. For example, in 2018, only 7 percent of e-commerce purchases were paid for with cash.
There’s no reason to argue that cash will become popular again after covid-19.
The popularity of this online payment method in the UK is less than 3%. However, unlike cash, bank transfers have quite good prospects. In many ways, these prospects are due to a significant reduction in delays in processing payments. And everyone wants to make online purchases not only safely, but also quickly.
What does the UK e-payment market have in store for us over the coming years?
We’re likely to see a rise in mobile payments, as well as credit card payments. Either way, it’s very important for companies to provide their customers with the best opportunities and benefits to stay competitive. Many of these benefits will come from working with PayDo.