Worldpay from FIS research: Brits embrace alternative payment methods amidst challenging times
UK consumers are increasingly turning to alternative payment offerings, including digital wallets, as they look to better manage their finances amidst the cost-of-living crisis, according to new research.
The Worldpay from FIS Global Payments Report 2023 examines how consumers pay today, both in-store and online across 40 global markets.
In the UK, digital wallets are the leading payment method among consumers shopping online, accounting for 35% of e-commerce transaction value in 2022, while they increased their share of PoS transaction value to 10% in 2022.
Buy now pay later (BNPL) increased its share of e-commerce transaction value to account for 8% of e-commerce spend in 2022, up 33% YoY from 2021. Account-to-account payments (A2A) are also on the rise in the UK, accounting for 9% of e-commerce transaction value in 2022, up from 8% in 2021.
Alternative payment methods are also gaining e-commerce share across Europe, but when compared to the UK, payment methods vary greatly. While the UK leads the region in digital wallet share, it is behind in A2A adoption.
A2A payments in both Poland (67% e-commerce transaction value) and the Netherlands (62% e-commerce transaction value) have a much larger market share. In Sweden, BNPL is the leading country payment method with 24% of e-commerce transaction value, while in Turkey, credit cards account for 53% e-commerce transaction value.
Across the continent, multiple factors including differences in local culture, regulation and technological innovation are all impacting how consumers pay.
Pete Wickes, EMEA General Manager, Worldpay Merchant Solutions, FIS, says: “Although the threat of a global economic slowdown may have hampered consumer spending, e-commerce continued to grow in the UK last year.”
“Innovation in payment solutions is running at a hot pace right now, greatly improving the experience for customers, reducing headaches for merchants, and unlocking new avenues for growth.”
“Meeting consumer demand for advanced payments features now can help businesses thrive through economic troubles, while potentially gaining market share from competitors.”
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