How people pay in the United Kingdom in 2026
The United Kingdom is a card-first, contactless market with some of the most mature bank payment rails in Europe. According to the UK Finance UK Payment Markets 2026 report, people and businesses made 49.7 billion payments in 2025, excluding CHAPS. Debit cards carried 26.6 billion of them, 54% of the total, and contactless methods accounted for 39% of all payments. Faster Payments and other remote banking payments came second, with 6.2 billion payments, and 80% of adults bought goods or services online.
Account-to-account payments are the fastest-moving part of the market. Bacs Direct Debit handled a record 5 billion transactions in 2025, open banking payments reached 40.16 million in June 2026 alone, and the first commercial variable recurring payments went live that same month. Cash keeps shrinking but is still protected by FCA cash access rules, and buy now, pay later became a regulated product on July 15, 2026. For merchants and their payment providers, the UK checkout means cards and wallets first, with Pay by Bank and BNPL as growing options. For another card-first market, see our guide to payment methods in the United States.
- 26.6 billion debit card payments in 2025, 54% of all payments (UK Finance)
- 5.5 billion Faster Payments transactions in 2025, up 9% (Pay.UK)
- 37.6 million consumers registered for at least one mobile wallet in 2025 (UK Finance)
- 3.9 billion cash payments in 2025, 8% of all payments (UK Finance)
Payment by card in the United Kingdom
Cards dominate everyday spending in the UK. The UK Finance UK Payment Markets 2026 report counts 26.6 billion debit card payments in 2025, 54% of all payments and 63% of consumer payments, with cards as a whole reaching 64% of all payments. Credit cards added 5.3 billion payments, up from 5 billion in 2024. 56% of adults hold at least one credit or charge card, and 65 million of these cards are in issue. The UK has no domestic card scheme, so Visa and Mastercard brand almost every card, with American Express as a third network.
Contactless is the norm. UK Finance recorded 19.2 billion contactless card payments in 2025, and 62% of consumer debit card payments were made by tap. Since March 2026, the FCA lets banks and payment providers with strong fraud controls set their own contactless limits, although UK Finance notes that most issuers have kept the £100 cap. Acceptance costs, from interchange fees to scheme fees, remain a key topic for UK merchants, and our guide to how card networks work explains where they come from.
Card schemes in the United Kingdom
Visa
International scheme
The leading card brand in the UK, used on most debit cards issued by British banks and building societies for in-store, online and recurring payments.
Mastercard
International scheme
The second scheme in the UK, strong on credit cards and on debit cards from several banks and neobanks, and accepted at virtually every terminal.
American Express
Charge and credit card
The third card network in the UK, issuing its own charge and credit cards, popular with business travelers and reward seekers, and widely but not universally accepted.
Contactless debit cards
Debit card
The everyday payment method of the UK, tapped at shop tills, on public transport and at self-checkouts, and stored in mobile wallets for online and in-app use.
26.6 billion debit card payments in 2025, 54% of all UK payments, UK Finance
Credit cards
Credit card
Credit cards are widely used for larger purchases, travel and online shopping, helped by the Section 75 purchase protection that UK consumer credit law gives on qualifying purchases.
5.3 billion credit card payments in 2025, with 65 million credit and charge cards in issue, UK Finance
Payment by cash in the United Kingdom
Cash is now a minority payment method in the UK, but it has not disappeared. According to UK Finance, the number of cash payments fell to 3.9 billion in 2025, from 4.3 billion in 2024, or 8% of all payments, and it is forecast to drop to around 2.1 billion by 2035. Yet 49.3 million people still used a cash machine in 2025. The LINK network reports that £76.7 billion was withdrawn from its ATMs in 2025, across 1.27 billion transactions, down 4% in value. The Bank of England counted 4.98 billion of its notes in circulation at the end of February 2026, worth about £91.5 billion.
Access to cash is protected by regulation, with LINK assessing local needs and banks funding shared banking hubs when branches close. Post Office branches act as counters for most UK banks, and recorded 6.77 million cash deposits in October 2025, a monthly record. Online, cash survives through bill payment networks and prepaid vouchers. Our article on the transition from cash to digital payments looks at how other markets handled the same shift.
Cash payment methods in the United Kingdom
Cash
Banknotes and coins
Pound sterling notes and coins, issued by the Bank of England and, for local notes, by banks in Scotland and Northern Ireland, are still used for small purchases, budgeting and by people without digital alternatives.
3.9 billion cash payments in 2025, 8% of all UK payments, UK Finance
LINK
ATM network
The UK's cash machine network, connecting every major bank and building society to over 40,000 ATMs, and in charge of assessing where communities need new cash access services.
£76.7 billion withdrawn from LINK ATMs in 2025, across 1.27 billion transactions, LINK
Post Office
Cash counter network
Through the Banking Framework, extended to the end of 2030, customers of over 30 banks and building societies can deposit and withdraw cash at more than 11,500 Post Office branches.
6.77 million cash deposits at Post Office branches in October 2025, a monthly record, Post Office
PayPoint
Cash bill payment
A network of convenience stores where people pay energy, rent and council bills in cash, top up prepayment meters and pay for online orders with a barcode.
31,006 UK retail sites in the PayPoint network at the end of December 2025, PayPoint
Paysafecard and Paysafecash
Cash voucher
Paysafe's prepaid PIN vouchers and barcode cash payments, used for gaming and digital goods; Paysafecash became payable at PayPoint locations in 2019.
Payment by bank transfer in the United Kingdom
The UK has one of the oldest real-time payment systems in the world. Faster Payments, operated by Pay.UK, processed 5.5 billion transactions worth £4.8 trillion in 2025, up 9% in volume. Bacs Direct Debit remains the default for bills, with 5 billion payments in 2025 and about 7 in 10 regular bill payments, according to UK Finance. Paym, the old mobile number payment service, closed on March 7, 2023.
Open banking now brings these rails to the checkout as Pay by Bank. The FCA says more than 16 million people use open banking and payments grew 53% year on year. In June 2026, Open Banking Limited counted 40.16 million open banking payments, including 7.73 million sweeping VRPs. Commercial variable recurring payments went live in June 2026 with the UK Payments Initiative scheme, and an industry-led Future Entity design programme should deliver a blueprint for open banking's long-term body by the end of 2026. Our article on VRPs for PayFacs explains the opportunity.
Bank transfer methods in the United Kingdom
Faster Payments
Instant payment
The UK's real-time interbank payment system since 2008, used for transfers between people, bill payments, payouts and as the rail behind open banking payments.
5.5 billion transactions worth £4.8 trillion in 2025, up 9% in volume, Pay.UK
Open banking payments (Pay by Bank)
Pay by bank
Shoppers choose their bank at checkout, approve the payment in their banking app and the funds move by Faster Payments, offered by payment initiation providers and many PSPs.
40.16 million open banking payments in June 2026, Open Banking Limited
Commercial VRP (UKPI)
Recurring pay by bank
Variable recurring payments for merchants, run under the industry-owned UK Payments Initiative scheme, which went live in June 2026 for sectors such as utilities, financial services, government and charities, according to the FCA.
16% of open banking transactions were VRPs, mostly sweeping, in late 2025, FCA
Bacs Direct Debit
Direct debit
The standard way to collect bills, subscriptions and memberships in the UK, backed by the Direct Debit Guarantee that refunds payers immediately in case of error.
5 billion Direct Debit payments worth £1.5 trillion in 2025, Pay.UK
Cheques
Paper payment
Still accepted by some businesses, charities and public bodies, cheques are cleared as digital images and are declining year after year.
78.7 million cheques cleared through the Image Clearing System in 2025, Pay.UK
Payment by installment and BNPL in the United Kingdom
The UK is one of Europe's largest buy now, pay later markets. According to UK Finance, 12.9 million adults, or 22%, used BNPL at least once in 2025, and 42% of them did so monthly or more often, up from 33% in 2024. The FCA puts deferred payment credit lending at more than £13 billion in 2024, against £0.06 billion in 2017.
Since July 15, 2026, interest-free BNPL is regulated consumer credit. Lenders need FCA authorization, must run proportionate affordability checks, apply the Consumer Duty and support customers in difficulty, and borrowers can complain to the Financial Ombudsman Service, as Payment Expert summarizes. Klarna leads the market with just over 11 million UK customers, followed by Clearpay and PayPal, which added a Pay in 30 Days option in July 2026 next to Pay in 3. Home-grown players such as Zilch and neobank products such as Monzo Flex complete the picture.
Installment and BNPL providers in the United Kingdom
Klarna
BNPL
The largest BNPL provider in the UK, offering Pay in 3, pay in 30 days and financing at online and in-store checkouts. It launched the Klarna Card and Klarna balance in the UK in October 2025.
11 million+ UK customers and close to 60,000 British retailers in May 2025, Klarna
Clearpay
BNPL
The UK brand of Afterpay, owned by Block, which splits purchases into four interest-free installments, mostly in fashion and beauty, and lets users set their own spend cap in the app.
PayPal Pay in 3 and Pay in 30 Days
Wallet BNPL
PayPal's installment and deferred payment options, available inside the existing PayPal checkout, so merchants need no extra integration. Pay in 30 Days covers purchases from £1 to £900.
Nearly 30 million PayPal customers in the UK in July 2026, PayPal
Zilch
BNPL card
A London-based, FCA-regulated BNPL provider whose virtual card lets users pay in installments or pay in full with cashback at almost any merchant, online and in stores.
5 million+ customers and £1.9 billion gross merchandise value in the year to March 2025, tech.eu
Monzo Flex
Bank BNPL
Monzo's flexible credit card lets customers split purchases into monthly installments from the banking app, one of several bank-issued alternatives to standalone BNPL.
12 million+ Monzo customers in FY2025, Monzo
Payment by digital wallet and X-Pay in the United Kingdom
Phones are a standard way to pay in British shops. According to UK Finance, about 37.6 million consumers, more than six in ten adults, were registered for at least one mobile wallet in 2025, and 58% of adults regularly used mobile contactless payments. Apple Pay and Google Pay carry most of these X-Pay payments, with Samsung Wallet on Samsung devices, and wallets are also a common way to pay online and in apps.
PayPal remains the leading online wallet, with a UK customer base of nearly 30 million. Wallets and BNPL are converging: Klarna became available in Google Pay in the UK in February 2026. Neobanks are a growing force too. Revolut, with about 13 million UK customers, obtained its full UK banking license in March 2026. Our article on Apple Pay integration challenges covers what PSPs need to get right.
Digital wallets and X-Pay in the United Kingdom
Apple Pay
Mobile wallet
Apple's wallet, used across the UK for contactless payments in shops and on public transport, and for one-click card payments online and in apps.
37.6 million UK consumers registered for at least one mobile wallet in 2025, UK Finance
Google Pay
Mobile wallet
The Android wallet for tap-to-pay with tokenized Visa, Mastercard and American Express cards, offered at checkout by most UK PSPs, and since February 2026 also able to offer Klarna installments.
PayPal
Online wallet
The most established online wallet in the UK, used for marketplace, retail and subscription payments, with buyer protection and built-in Pay in 3 and Pay in 30 Days options.
Nearly 30 million PayPal customers in the UK in July 2026, PayPal
Samsung Wallet
Mobile wallet
Samsung's wallet, formerly Samsung Pay, used for contactless card payments on Samsung Galaxy phones and watches.
Revolut
Neobank wallet
The neobank's app, tokenized cards and Revolut Pay checkout are widely used for online, in-store and cross-border payments, now under a full UK banking license.
About 13 million UK customers in March 2026, tech.eu
Payments in the United Kingdom: FAQ
What is the most popular payment method in the United Kingdom?
The debit card. Debit cards carried 26.6 billion payments in 2025, 54% of all UK payments, according to the UK Finance UK Payment Markets 2026 report. Most of them are contactless, by card or phone.
What is Pay by Bank in the UK?
Pay by Bank is an open banking payment: the shopper approves the payment in their banking app and the money moves instantly by Faster Payments, without a card. Open banking payments reached 40.16 million in June 2026, and commercial variable recurring payments launched the same month.
Is buy now, pay later regulated in the UK?
Yes, since July 15, 2026. Under the FCA's PS26/1 rules, interest-free BNPL is regulated credit: lenders need authorization and must check affordability, and customers can complain to the Financial Ombudsman Service. Klarna, Clearpay and PayPal lead the market.
Do people in the UK still use cash?
Yes, but less every year. Cash payments fell to 3.9 billion in 2025, 8% of all payments, according to UK Finance, while £76.7 billion was still withdrawn from LINK ATMs that year. Post Office branches and banking hubs keep cash services available as bank branches close.
Accept local payments in the UK with NORBr
UK merchants usually accept payments through acquirers such as Worldpay and Barclaycard Payments, while Trust Payments, GoCardless and Volt cover gateways, Direct Debit and account-to-account payments. Check UK acquiring licenses, open banking and commercial VRP readiness, and Bacs support.
With NORBr, you can connect any acquirer, PSP or local provider that offers contactless cards, open banking payments, Direct Debit and BNPL such as Klarna and Clearpay. Some are already in our connector catalog; Mapper™ gets the others live in days, and Smart Checkout shows each shopper the right methods. Explore the other #PayWorldTour guides.
Local payment providers in the United Kingdom
Worldpay
Acquirer
UK-founded merchant acquirer and gateway, one of the largest card processors for British retailers, from large e-commerce brands to high street stores.
Covers: Cards, Visa, Mastercard, American Express, Apple Pay, Google Pay, PayPal, Open banking / Pay by Bank
Barclaycard Payments
Acquirer
Merchant acquiring arm of Barclays, serving UK small businesses and large merchants with card terminals, online payments and acquiring.
Covers: Cards, Visa, Mastercard, American Express, Apple Pay, Google Pay, Samsung Wallet
Trust Payments
Payment gateway
UK-headquartered gateway and acquirer, formerly Secure Trading, offering online, in-store and unattended payments to merchants in the UK and Europe.
Covers: Cards, Visa, Mastercard, American Express, Apple Pay, Google Pay, PayPal
GoCardless
Pay-by-bank provider
London-based bank payment specialist for recurring and one-off payments, widely used for UK subscriptions and invoices; Mollie agreed to acquire it, with completion expected in the second half of 2026.
Covers: Bacs Direct Debit, Open banking / Pay by Bank, Commercial VRP, Faster Payments
Volt
Pay-by-bank provider
London-based account-to-account payment network that lets UK merchants take instant open banking payments and refunds, alongside markets in Europe and beyond.
Covers: Open banking / Pay by Bank, Faster Payments, Commercial VRP
