UK Payment Markets Analysis and Trends 2023

This technical report presents an analysis of the UK payment markets for the year 2022, detailing the evolution of payment methods and consumer behavior influenced by various economic factors. It outlines the significant changes in payment patterns resulting from the Covid-19 pandemic, which led to a notable decline in cash payments and a rise in contactless and card transactions. The report documents that the total number of payments made in the UK increased to 45.7 billion in 2022, up from 40.4 billion in 2021, with debit and credit card payments continuing to gain market share. It also highlights the shift towards smaller, more frequent transactions as consumers adapt their shopping habits. The report notes the impact of inflation and the rising cost of living on payment choices, including a slight increase in cash usage as consumers seek to manage their budgets. Furthermore, it discusses the ongoing trends in mobile banking and the anticipated developments in payment infrastructure over the next decade.