With digital payments on the rise, the UK, as with other advanced industrialised nations, is experiencing a significant shift towards cashless transactions. This trend has prompted the firm SumUp to conduct a nationwide survey, gathering insights from UK consumers about their payment habits.
In recent years, the way people pay for goods and services has gone through a significant transformation. With a growing range of payment options available, from contactless cards to mobile wallets, and Buy Now, Pay Later services, consumers are increasingly looking for convenience, security, and flexibility in how they make purchases.
Methods of payment
The findings have been shared with Digital Journal, and they reveal that 18 percent of the UK population prefers mobile payments (such as Apple Pay and Google Pay) while only 11 percent opt for cash. For the remainder, 62 percent prefer a credit or debit card.
Among younger generations, mobile payments are popular, with more than a third (36 percent) of those aged between 18 and 24 adopting mobile payment methods, alongside 28 percent of people aged between 25 and 34.
As another leading indicator, 22 percent of people confirmed that they have switched to digital payment methods (including apps and contactless services), with 15 percent revealing that they now use cash far less frequently.
Business responses
In terms of how firms should react to this consumer trend, 24 percent of participants believe that all businesses should now cater for modern payment methods, with a further 19 percent finding cash-only businesses inconvenient.
Cybersecurity
The path to digital is not without its concerns, especially when it comes to cybersecurity. Here, 36 percent of respondents worry about security issues like fraud, hacking, and stolen data, while 34% have concerns about their phones failing to connect when trying to pay.
Aside from external threats, people can also compromise their own security and access. With this, 7 percent admitted that they frequently forget their PIN, with 24 percent revealing that while they have not fully forgotten it, they have had trouble remembering it once or twice.
AI for the future
With future technological change, 12 percent of the cohort said they would be open to trying AI-powered payments. The survey further revealed that more than a quarter (29 percent) of UK consumers would trust AI to make small, automated payments on their behalf – highlighting a growing openness to AI-driven financial tools. Among those respondents, 11 percent said they would be comfortable allowing AI to handle all types of payments.
Additionally, 7 percent said they’d be happy for AI to take care of everyday purchases such as groceries, transport, and coffee – suggesting convenience is a key driver in evolving payment preferences.
While 71 percent of UK consumers said they wouldn’t be comfortable with AI making payments on their behalf, the data suggests that the hesitancy stems from a desire to maintain control over their finances. Among those respondents, a third (33 percent) said they would prefer to review transactions before they are processed, whilst 38% expressed outright distrust over AI making financial decisions on their behalf.
These findings offer valuable insights for small and medium sized enterprises, helping them to better understand shifting purchasing behaviours. Insights include the payment methods people prefer, their concerns around certain payment methods, alongside how they feel about businesses that do not accept digital payments.
