How UK Customers Pay Online
Cards dominate UK payments. Your strategic priority depends on which cards and how consumers access them. UK Finance data shows cards accounted for 64% of all transactions in 2024.
Within this card dominance, debit cards represent approximately 85% of card transaction volume. Credit cards account for 15%. The method customers use to access these cards matters as much as the cards themselves.
Mobile wallet adoption reached 57% of UK adults in 2024, up from 42% in 2023. This represents 36% year-over-year growth. When UK consumers make mobile wallet payments, they process transactions through linked cards.
This creates a different experience than traditional card entry.
For online e-commerce specifically, these statistics from UK Payments are revealing:
- Around 70% of UK consumers recently purchased products using PayPal
- 30% used Apple Pay for online purchases
- PayPal dominates online e-commerce channels
- Mobile-first wallets like Apple Pay show stronger adoption in contactless contexts
Forrester research confirms UK consumers prioritise payment experience quality over method variety. 30% rarely adopt new payment methods. 10% abandon purchases specifically due to missing payment options.
Faster Payments represents the UK’s second most-used payment method after cards. It processed 5.6 billion transactions in 2024. This instant payment infrastructure connects to bank accounts and creates account-to-account payment capabilities.
Buy Now, Pay Later reached £13 billion in 2024. One in five UK adults used BNPL in the 12 months to May 2024. If your average transaction value sits between £50-£500, BNPL integration directly impacts your conversion rates.
This applies especially when you target consumers aged 18-34.
Mobile devices accounted for approximately 56% of all e-commerce retail sales in the UK in 2023. This percentage will increase to around 57.6% by 2027. Your checkout experience must be designed mobile-first, so don’t treat it as a responsive adaptation of desktop flows.
In-Store Payment Preferences
The UK has reached contactless payment saturation.
94.6% of all eligible in-store card transactions were made using contactless technology in 2024. This rose from 93.4% in 2023. Barclays’ analysis of hundreds of millions of customer transactions confirms contactless infrastructure is required baseline functionality.
Consumers made 18.9 billion contactless card payments in 2024. Approximately 62% of debit card payments were contactless. 55% of credit card payments used contactless.
The UK operates with a £100 contactless transaction limit for cards, increased from the previous £45 limit. This creates both a terminal infrastructure requirement and a consumer behaviour pattern that differs from other European markets.
For transactions exceeding the £100 contactless limit:
- Chip and PIN is the most common method used;
- Cash is still used, but less frequently as a first choice for payment;
- Mobile wallets, such as Apple Pay, are increasingly popular for both in-store and online purchases, especially among younger consumers.
Digital wallet usage at UK point-of-sale will more than double. It is projected to rise from 14% to 29% of transaction value over the next three years. Your in-store payment infrastructure should support mobile wallets.
Market Entry Strategy for Payment Decisions
Based on the above, here are some key payment infrastructure decisions your business needs to make to capture more payments from the UK consumer.
Priority Payment Methods to Offer
Card acceptance should be your foundational infrastructure.
With mobile wallet usage and adoption rising rapidly across the UK—especially among younger consumers—having comprehensive payment method coverage should be a priority.
PayPal is your second priority for UK online e-commerce. Around 70% of UK consumers have recently purchased products online using this digital wallet, making it a dominant player in e-commerce channels.
Apple Pay captures 30% of UK online users. This positions it as a significant secondary digital wallet.
Consider Faster Payments integration for account-to-account payment capabilities. Its position as the UK’s second most-used payment method with 5.6 billion transactions creates opportunities unavailable in most markets.
Follow Localisation Requirements
Display all prices in British Pounds Sterling (£) as the primary currency.
British online shopping conversion rates averaged 2.18% in Q4 2023 and 1.94% in Q4 2024. This establishes baseline performance metrics against which you should measure your implementation.
YouGov research shows email (33%) and phone (31%) represent the most widely preferred channels for contacting customer service amongst UK consumers. Consider these key support requirements:
- Email and phone support as foundational channels
- Digital messaging platforms like WhatsApp and Instagram for younger demographics
- British English localisation including UK spelling and terminology
- Date formats following UK standards (DD/MM/YYYY)
- Measurement units and regulatory compliance language
- UK GDPR, Consumer Rights Act 2015 and UK-specific consumer protection laws