What you need to know

2018 was the first year that debit card transactions exceeded those of cash, as the steady roll-out of contactless technology made low-value card payments faster and more convenient. People are using cash less often but their emotional attachment to it remains; 63% carry cash all or most of the time while people’s preference for paying in cash varies significantly across the country.

New payment methods are emerging that better reflect the way consumers spend their money. Brands like Klarna and Clearpay offer a way to spread the cost of online purchases or delay payment until purchasers have decided what items they want to keep. These payment methods help brands blur the line between online and physical retailing and the convenience they offer makes them increasingly popular with the under-35s.

Meanwhile the more traditional forms of retail credit are being redesigned to create retailing eco-systems that blend goods and services in a way that prolongs and enhances the customer experience. A well thought out and carefully designed way of taking payment can enhance the customer experience, foster greater loyalty and help retailers stand out in a highly competitive and rapidly changing market.

Products covered in this Report

This Report explores the way in which consumers pay for goods and services and how this is changing. It also examines why consumers choose to pay the way they do and how they feel about the changing payments landscape.

This Report covers the following types of payments:

  • Cash

  • Debit card payments

  • Credit card payments

  • Retail and online credit (including buy now, pay later and instant digital credit options).

For more detail on what’s happening with regards to specific markets, see the following related Reports:

  • Credit Cards – UK, August 2019

  • Unsecured Loans – UK, January 2020

The Report also examines consumer attitudes towards payment technologies such as contactless, mobile digital wallets and invisible payments.

For more detail purchases made via technology devices see Digital Platforms and The Customer Journey – UK, January 2020.

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