Key Takeaways
- The UK payments sector is set to grow in the near future
- Data shows that transaction volumes and amounts are on the rise
- The British pound (GBP) plays a significant role in cross-border transfers
- Plus, new payment services are being established, usership is on the rise, and regulatory shifts are on the horizon
The UK Payments Landscape
The UK is home to various payment options that have allowed it to build a strong local payment market while gaining a foothold internationally.
The British pound and UK-based networks like CHAPS, BACS, and FPS are used for domestic (and sometimes international) payments. Global networks like SWIFT and SEPA allow for additional cross-border transactions.
Furthermore, business and consumer payments, and especially digital payments, are driving UK payments activity to new heights.
We’ll look at how the UK payments landscape could change in 2025 and beyond — and how your company can adapt to those changes.
Higher Transaction Volumes
The UK is experiencing higher transaction volumes than ever before.
UK Finance reports that 48.1 billion payments were made in the UK in 2023, up from 45.7 billion payments the previous year. While the report does not provide a short-term forecast to 2025, it forecasts 55.8 billion payments in 2033.
Transactions are mainly consumer-focused. 41 billion payments were consumer payments, while 7.1 billion were business payments.
This trend has implications for businesses: with rising transaction counts, you’ll need a solution that can handle more payments efficiently and affordably.
Greater Transaction Value
There aren’t just more payments — more value is being transacted, too.
Statista expects that total transacted value in the UK digital payments market will reach 447.9 billion USD in 2025. By 2029, it could reach 942.1 billion USD, representing a compound annual growth rate (CAGR) above 20%.
In light of this trend, businesses should seek out payment solutions that are capable of handling large values, not just high quantities of transactions.
Rising B2B Payments
Straits Research placed the value of the UK business-to-business (B2B) payments market at 10.2 billion USD in 2023.
It expects the market will reach 196.6 billion USD by 2032, representing a CAGR of 8.2%. That growth is occurring due to greater digitization and automation of B2B payment systems and more global trade — although COVID-19 has reduced demand for some products and services.
Ultimately, business-to-business (B2B) payments are expanding rapidly, and your company should be prepared to handle more transacted value in this area.
More Online Banking Usage
Online banking is gaining ground among the UK population.
According to Finder.com, 87% of UK adults — 47 million people — used some form of online or remote banking.
Furthermore, 60% of UK adults reported using mobile banking, and 40% of UK adults report having a digital-only bank account.
Though respondents did not solely identify payments as their reason for banking online, the trend means that businesses should think about ways to accept transactions from their clients’ and partners’ online bank accounts.
The Rise of EMIs
ClearBank reported growth around electronic money institutions (EMIs).
It found that EMIs in the EU and the UK safeguarded €35 billion of funds in 2022, representing nearly twofold growth over four years.
Plus, the UK accounts for a substantial portion of the EMI sector. It is responsible for €17 billion of the €35 billion total, per ClearBank’s report. Plus, the UK houses about 250 of the 600 EMIs that operate across Europe.
The trend demonstrates that EMIs are increasingly available to UK customers, presenting a viable alternative to traditional banks and payment services.
Open Banking Standards
The UK is gradually moving toward open banking, which will allow customers to securely share their financial data with third-party applications and access new possibilities such as variable recurring payments.
The Financial Conduct Authority (FCA) called open banking a “success story” with over 11.7 million active users and more than 22.1 million monthly payments.
The FCA anticipates progress in 2025 through its support of Open Banking Limited, which will allow for recurring payments to utility companies, governments, and financial services firms — and later, e-commerce payments.
Cross-Border Payments
Data shows that the UK is highly involved in international payments.
Bank Underground discovered cross-border transactions accounted for 52%-67% of CHAPS payments in its survey period. Plus, 41% of value settled via CHAPS was cross-border, again pointing to major international value transfer.
Meanwhile, MacroMicro reports that the British pound (GBP) makes up 6.9% of SWIFT transactions. This makes GBP the third most popular currency in SWIFT transactions after the US dollar (49.12%) and the euro (21.74%).
And, although full data is not available, the UK’s access to the SEPA and other networks likely points to additional international activity.
Businesses should choose services that allow for cross-border payments with various countries, via various payment networks, and at affordable rates.
Upcoming Regulatory Shifts
The UK is set to move toward new regulations affecting payments innovations, including potential rules affecting safeguarding of customer funds, Buy Now Pay Later (BNPL) services, stablecoins, digital wallets, and more.
Additionally, the UK will continue to enforce recent mandatory reimbursement rules to protect against Authorised Push Payment (APP) fraud.
Those changes could set stricter rules for payment service providers — but as a user of payment services, you’ll benefit from stronger protections.
How Payset Can Help Meet Your Global Payment Needs in 2025
Payset can help your company make the most of these trends.
As a UK-based electronic money institution (EMI), we provide multi-currency IBAN accounts, access to international payment networks, and FX exchange.
With Payset, your funds are protected through our safeguarding and security policies. Plus, you’ll enjoy competitive fees, real-time currency conversion rates, no limits on transactions, bulk payment options, and more.
Payset can help you engage with UK payments to the fullest extent possible whether you’re based in the UK itself or another country.
