UK Digital Payments Market

UK Digital Payments Market Overview:

The UK digital payments market size reached USD 3.40 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 11.20 Billion by 2033, exhibiting a growth rate (CAGR) of 12.70% during 2025-2033. The UK digital payments market share is expanding, driven by the rise of e-commerce channels, widespread adoption of contactless and mobile payments, continual advancements in fintech innovations, government regulations promoting secure digital transactions, and increasing integration of digital payment systems into everyday services.

UK Digital Payments Market Trends:

Rise of digital banking and e-commerce channels

People are using various means of making payments, such as digital wallets, credit cards, and bank transfers, as they develop confidence in online transactions. Innovations, including integrated mobile payment systems, and efficient logistics services are making it easier for individuals to manage their finances and conduct transactions through mobile apps. Real-time notifications and a user-friendly interface have further popularized these platforms, encouraging more users to adopt digital payments. This increase in e-commerce shopping is indicative of a leading factor towards the growth of the market. According to the Office for National Statistics, in January 2025, internet sales represented 26.8% of total retail sales in the UK.

Ongoing advancements in digital banking

The rise of digital-only banks, such as Monzo and Revolut, is impelling the UK digital payments market growth. These banks have disrupted traditional banking models by offering innovative services that focus on user experience, including seamless digital transactions. The integration of digital banking services and technology tools with payments has simplified the process for users to handle their finances and carry out transactions via mobile applications. In February 2025, the Government Digital Service (GDS) in the UK was prepared to incorporate open banking technology into its payment system Gov.UK Pay. It was utilized by 1,228 services within 440 organizations. Individuals were to have the choice to pay for services easily through their own banking application. Apart from this, real-time notifications and better security features motivate people to transition from cash and traditional banking methods to digital payments. Furthermore, these banks' flexible services continue to attract a growing base of tech-savvy consumers, and as a result, create lucrative opportunities in the market.

Government initiatives and regulation

The increasing implementation of government initiatives aimed at supporting seamless payments is offering a favorable UK digital payments market outlook. In November 2024, the UK government released the National Payments Vision, outlining its goals for the UK’s payments industry to provide top-tier payment solutions and aid in the growth objective. The UK government has been promoting digital payments as part of its broader goal to modernize financial services. Programs, such as open banking, which enable third-party providers to securely access banking information, have resulted in innovations in payment solutions. Additionally, regulations like the Payment Services Directive 2 (PSD2) aim to enhance competition and strengthen consumer protection. These measures have encouraged financial institutions to embrace advanced technologies, improving the accessibility, security, and reliability of digital payment solutions. Through regulatory frameworks and targeted initiatives, the government is nurturing trust, innovation, and growth in the market, ensuring its sustained development.

UK Digital Payments Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on component, payment mode, deployment type, and end use industry.

Component Insights:

• Solutions
  • Application Program Interface
  • Payment Gateway
  • Payment Processing
  • Payment Security and Fraud Management
  • Transaction Risk Management
  • Others
• Services
  • Professional Services
  • Managed Services

The report has provided a detailed breakup and analysis of the market based on the components. This includes solutions (application program interface, payment gateway, payment processing, payment security and fraud management, transaction risk management, and others) and services (professional services and managed services).

Payment Mode Insights:

• Bank Cards
• Digital Currencies
• Digital Wallets
• Net Banking
• Others

A detailed breakup and analysis of the market based on the payment modes have also been provided in the report. This includes bank cards, digital currencies, digital wallets, net banking, and others.

Deployment Type Insights:

• Cloud-based
• On-premises

The report has provided a detailed breakup and analysis of the market based on the deployment types. This includes cloud-based and on-premises.

End Use Industry Insights:

• BFSI
• Healthcare
• IT and Telecom
• Media and Entertainment
• Retail and E-commerce
• Transportation
• Others

A detailed breakup and analysis of the market based on the end use industries have also been provided in the report. This includes BFSI, healthcare, IT and telecom, media and entertainment, retail and e-commerce, transportation, and others.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Digital Payments Market News:

• In May 2024, Stripe, a financial infrastructure platform for enterprises, introduced new payment solutions and funding alternatives in the UK that will enhance capital access and expedite the expansion of countless UK enterprises. The updated offering aimed to provide business funding through Stripe Capital, lower payment options enabled by open banking, and faster payout processing.
• In July 2024, Visa teamed up with Wirex to encourage the use of digital currency in Europe and the UK. The collaboration launched Wirex Pay, a "modular zero knowledge (ZK)" payment chain created by Wirex, designed to simplify both conventional and cryptocurrency transactions. This project was a segment of a broader partnership between Wirex and Visa aimed at incorporating blockchain technology into traditional financial systems.

UK Digital Payments Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK digital payments market performed so far and how will it perform in the coming years?
• What is the breakup of the UK digital payments market on the basis of component?
• What is the breakup of the UK digital payments market on the basis of payment mode?
• What is the breakup of the UK digital payments market on the basis of deployment type?
• What is the breakup of the UK digital payments market on the basis of end use industry?
• What are the various stages in the value chain of the UK digital payments market? 
• What are the key driving factors and challenges in the UK digital payments market?
• What is the structure of the UK digital payments market and who are the key players?
• What is the degree of competition in the UK digital payments market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK digital payments market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK digital payments market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK digital payments industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.