UK Real Time Payments Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 11.45 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UK Real Time Payments Market Analysis
The UK real-time payments market is anticipated to grow with a CAGR of 11.48% on the back of increasing demand for easy and cheap payment options by consumers to access real-time payments. Real-time payments have been possible in the UK since 2008 under the Faster Payments scheme. However, despite the significant head start, the market's development has been markedly slower than those in the developing world.
The UK recorded 3.4 billion real-time transactions in 2021, which resulted in an estimated cost savings of USD 950 million for businesses and consumers. This helped unlock USD 3.2 billion of additional economic output, representing 0.10% of the country's GDP.
With real-time transactions rising to 5.8 billion in 2026, net savings for consumers and businesses are forecast to climb to USD 1.8 billion. That would help to generate an additional USD 3.8 billion of economic output, equivalent to 0.11% of the country's forecasted GDP. That means the potential economic benefits of real-time payments remain untapped.
According to the Cebr, the theoretical impact of all charges being real-time could add 2.7% to formal GDP by 2026. Payments in the UK are still very much tied to traditional tools - especially cards - despite being easy and cheap for consumers to access real-time payments.
During the COVID-19 pandemic, a relatively strong real-time payments mix share (9.2% of all transactions), in 2021, net benefits for consumers and businesses of real-time payments hit USD 950 million in the United Kingdom.
The largest component of this was net savings through the transaction costs within the payments system. On a per-transaction basis, real-time payments in the UK currently have a 14.1% lower average payments cost than the weighted average mix of all non-real-time prices.
UK Real Time Payments Market Trends
This section covers the major market trends shaping the UK Real Time Payments Market according to our research experts:
Growing Requirement of Convenient Payment Options
In the United Kingdom, lockdowns resulted in large parts of the economy shutting down for details 2020-2021. Businesses also switched to working from home, reducing expenditure on travel and spending in city centers. The fall in business and consumer confidence saw consumers reduce discretionary spending while lower levels of business investment resulted in GDP falling by 9.8% in 2020-21.
Keeping above mentioned factors contributing to the fall in total payment volumes, 2020 in the UK also saw changes in how people and businesses paid. This included people making greater use of contactless, online, and mobile wallet channels, largely at the expense of cash payments. This is a permanent change to people's behavior, as in many other parts of people's lives; the pandemic has also affected UK real-time payment markets.
In 2020, the coronavirus pandemic hit the world, significantly impacting how most of us live and work. Unsurprisingly this also affected payment volumes in the UK, which declined by 11% to 35.6 billion in 2020.
Moreover, overall card payments in 2020 declined, and their share of payments increased, with over half (52%) of all payments made by cards in 2020. This was due to many retailers encouraging card and contactless use, along with lockdowns resulting in many people opting to shop online. At the same time, physical stores and contact-intensive services were shut down.
Declining Cash Dependency
- In the United Kingdom, cash payments continued their long-term decline in 2020, with the pandemic resulting in cash use falling by 35% compared to the previous year. Since 2017 cash use had been declining by around 15% each year, so 2020 represented an acceleration of this decline. This is largely attributed to the impact of the pandemic on cash use, with cash payments being affected to a greater degree than many other payments.
- They resulted in retailers pushing contactless payment options amid fears about cash being a vector for COVID-19 transmission, while many businesses with high levels of cash spend were closed.
- However, cash remained the second most frequently used payment method in the UK in 2020, being used for just under a fifth of the total number of payments made. Despite overall payment volumes falling, strong growth was seen in Faster Payments as businesses and consumers increasingly used online and mobile banking to make payments and transfer money.
- Mobile banking, in particular, continued to grow strongly, with users continually widening the range of tasks they perform using such services, exploring beyond checking their balances to make one-off payments and manage other aspects of their finances.
- Consumers made the large majority of the 35.6 billion payments in the UK, accounting for nearly nine out of ten costs. Spontaneous purchases accounted for 81% of payments made by consumers, with the other 19% of payments being made for regular bills and commitments
UK Real Time Payments Industry Overview
With consumer preferences changing rapidly, the United Kingdom real-time payments market has become a lucrative option and thus, has attracted a huge amount of investments. Due to the huge growth potential, the market is moving towards fragmentation due to the new entrants. The service providers are engaging in partnerships to promote product innovation.
In 2021, according to UK Finance market research, younger people were more likely than older people to use either Apple Pay, Google Pay, or Samsung Pay. Nearly a third (32%, 17.3 million people) of the adult population had registered for mobile payments in 2020, an increase of 7.4 million people (75%) compared with 2019. Of those noted for mobile payments, 84% of these people recorded a payment. Half (50%) of these registered users made payments fortnightly or more frequently.
UK Real Time Payments Market Leaders
-
Apple Inc. (Apple Pay)
-
Google LLC (Google Pay)
-
Samsung Electronics Ltd. (Samsung Pay)
-
VISA Inc.
-
Mastercard Inc.
*Disclaimer: Major Players sorted in no particular order
UK Real Time Payments Market News
- June 2022: In the United Kingdom and Europe, Apple's 'Pay Later' service will reportedly use Apple IDs to help detect fraudulent transactions and minimize the chance of losses. As most financial firms that provide "buy now, pay later" services use third-party credit reports to judge whether they can afford to offer credit to new and existing customers. For Apple Pay Later, a subsidiary has been created called Apple Financing LLC, giving Apple more direct control over the service.
UK Real Time Payments Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definitions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
-
4.2 Industry Attractiveness-Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers/Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Evolution of the payments landscape in the United Kingdom
- 4.4 Key market trends pertaining to the growth of cashless transaction in the United Kingdom
- 4.5 Impact of COVID-19 on the payments market in the United Kingdom
5. MARKET DYNAMICS
-
5.1 Market Drivers
- 5.1.1 Increased Internet Penetration
- 5.1.2 Decreasing Traditional Banking trend
- 5.1.3 Growing Requirement of Convenient Payment Options
-
5.2 Market Challenges
- 5.2.1 Threat of Growing Online Payment Fraud
- 5.2.2 Lack of Government Regulation
-
5.3 Market Opportunities
- 5.3.1 Government Policies Encouraging the Growth of Digital Paymentis expected to aid the growth of Real Time Payment methods amongst commoners
-
5.4 Key Regulations and Standards in the Digital Payments Industry
- 5.4.1 Regulatory Landscape Across the United Kingdom
- 5.4.2 Business Models with Potential Regulatory Roadblocks
- 5.4.3 Scope for Development in Lieu of Evolving Business Landscape
- 5.5 Analysis of major case studies and use-cases
6. Market Segmentation
-
6.1 By Type of Payment
- 6.1.1 P2P
- 6.1.2 P2B
7. Competitive Landscape
-
7.1 Company Profiles
- 7.1.1 ACI Worldwide Inc.
- 7.1.2 Fiserv Inc.
- 7.1.3 Paypal Holdings Inc.
- 7.1.4 Mastercard Inc.
- 7.1.5 Google LLC (Google Pay)
- 7.1.6 VISA Inc.
- 7.1.7 Apple Inc. (Apple Pay)
- 7.1.8 Samsung Electronics (UK) Limited (Samsung Pay)
- 7.1.9 Diners Club International
- 7.1.10 Finastra Limited
- *List Not Exhaustive
8. Investment Analysis
9. Future Outlook of the Market
** Subject To AvailablityUK Real Time Payments Industry Segmentation
Real-time payments are instant or immediate payments and are defined by the Euro Retail Payments Board (ERPB) as electronic retail payment solutions that are available 24/7/365. Immediate payments enable businesses and consumers to make and receive payments in real-time, providing convenience, speed, and faster availability of funds.
The UK real-time payments market is Segmented by Transaction Types (P2B, B2B, and P2P)
UK Real Time Payments Market Research FAQs
What is the current United Kingdom Real Time Payments Market size?
The United Kingdom Real Time Payments Market is projected to register a CAGR of 11.45% during the forecast period (2024-2029)
Who are the key players in United Kingdom Real Time Payments Market?
Apple Inc. (Apple Pay), Google LLC (Google Pay), Samsung Electronics Ltd. (Samsung Pay), VISA Inc. and Mastercard Inc. are the major companies operating in the United Kingdom Real Time Payments Market.
What years does this United Kingdom Real Time Payments Market cover?
The report covers the United Kingdom Real Time Payments Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United Kingdom Real Time Payments Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United Kingdom Real Time Payments Industry Report
Statistics for the 2024 United Kingdom Real Time Payments market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United Kingdom Real Time Payments analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
