eCommerce: Payment Methods in the UK

Most Popular Payment Methods in the UK: Key Insights

• Payment Methods Development: Digital payment methods have significantly expanded in the last two decades, challenging traditional payment methods.

• Payment Preferences: In the UK's eCommerce market in 2022, VISA and Mastercard hold the top spots at 97.1%, followed closely by PayPal at 82%, signaling a dominance of card payments but a notable presence of digital wallets.

• The Rise of Mobile Wallets: Apple Pay’s and PayPal’s surges indicate a growing trend towards mobile wallets, potentially challenging the dominance of traditional card payments in the UK.

Particularly in the last 20 years, digital payment methods have rapidly expanded. eWallets, digital wallets, and mobile wallets like PayPal, Amazon Pay, Apple Pay, and Google Pay, are among the fastest-growing transaction methods of the current decade.

Payment preferences thereby vary depending on the country, with PayPal being one of the most common methods as the oldest and most established digital payment platform. Even back in 2003, private customers in the UK were able to use this payment method.

A lot has happened since then and the payment system has spread rapidly. But is PayPal the most popular payment option offered in this country? Let's take a closer look at the UK and their preferred payment methods.

Most Popular Payment Methods in the UK: VISA & Mastercard Lead

As per 2022 data, cards are the most commonly used payment type by online retailers in the UK. Among the most offered payment methods are VISA and Mastercard. Together, they share the first place in the following ranking, each with 97.1%. Not far behind is the well-known digital payment platform PayPal, with 82%, followed by American Express at 61.5%. Significantly further down the list is the payment method of the tech giant Apple, Apple Pay, with nearly 20%.

In 2021, cash in advance held the fifth position with 12%, but now, in 2022, Apple Pay has taken over this spot, surpassing the former. This makes Apple not only a growing competitor for individual payment companies, but also, together with PayPal, mobile wallets that could potentially surpass card payments.

While PayPal has seen an almost 4% increase compared to 2021, the values of VISA, Mastercard, and American Express, albeit only minimally, have decreased. Could this be an indication that cards could be replaced by eWallets and digital wallets? It's not clear yet, but there is a trend towards mobile payments. The future will reveal which payment method remains the most popular in the UK.

Most Popular Payment Methods in the UK: Closing Thoughts

In the UK, digital wallets like PayPal and Apple Pay are gaining ground against traditional card payments, hinting at a shift towards mobile transactions. The future of payment methods in the UK remains uncertain, with eWallets, mobile wallets and digital wallets on the rise and cards experiencing a subtle decline.