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Payment Method Statistics You Should Know

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The GoCardless content team comprises a group of subject-matter experts in multiple fields from across GoCardless. The authors and reviewers work in the sales, marketing, legal, and finance departments. All have in-depth knowledge and experience in various aspects of payment scheme technology and the operating rules applicable to each. The team holds expertise in the well-established payment schemes such as UK Direct Debit, the European SEPA scheme, and the US ACH scheme, as well as in schemes operating in Scandinavia, Australia, and New Zealand. See full bio

Last editedOct 20222 min read

Keeping track of the latest payment method statistics can help your business create a more effective ecommerce strategy. You’ll be better able to cater to customer preferences and increase revenue. In this guide, we’ll look at UK payment method statistics as well as preferences within Europe and worldwide.

Ecommerce payment method statistics

The UK is the world’s third largest ecommerce market, according to aJP Morgan report. Ecommerce generated 16.5% of the nation’s annual business turnover and accounted for nearly a third of all retail sales in April 2020. So, which payment methods do ecommerce shoppers prefer? Here are a few key ecommerce payment method statistics to keep in mind, drawn from the same report.

Debit and credit cards are the preferred payment methods for ecommerce shoppers, followed by digital wallets and bank transfers.
Digital wallets will account for nearly a third of ecommerce payments by 2023, growing at an annual rate of 23%.

Mobile payment method statistics

Smartphones are ubiquitous in the UK across most age groups and 5G is available in many UK cities. As a result, mobile payments continue to grow in popularity. Mobile commerce is poised to take over an increasing percentage of sales from the ecommerce sector, set to grow at a compound annual rate of 13.6%. Here are a few additional mobile payment method statistics from JP Morgan:

Nearly half, or 45%, of mobile transactions take place using a mobile app.
Six out of 10 online purchases take place using a mobile device.
Turning to the global market, mobile payments are even more popular. For example, 81.1% of smartphone users in China choose mobile payment options.

Online payment method statistics

Looking beyond the UK, digital wallet payments take the top spot among online payment preferences. They comprise 41.8% of online payments worldwide, compared to credit cards at 24.2% and debit cards at 10.6%.

Here are a few additional online payment method statistics taken from a 2021 Worldpay Report:

Digital wallets are the leading payment method in European markets, including the UK. They are poised to capture 30% of the market by 2024.
BNPL is predicted to double its share of payments by 2024, accounting for 13.6% of ecommerce spending in Europe.
Bank transfers are popular in Europe, often linked to digital wallets for quick and easy check-out. They represent 13% of regional transactions.

B2B payment method statistics

According to YouGov research, UK businesses prefer bank-to-bank payment methods, particularly when it comes to paying recurring bills. We’ve gathered some additional B2B payment method statistics in our guide. Here are a few takeaways to consider:

Direct Debit was the preferred payment method for 75% of common recurring B2B payments.
Bank transfer was the preferred payment method for invoice payments.
Corporate cards have fallen out of fashion for UK businesses, with only one-third stating that they would use them to pay bills and recurring subscriptions.
Digital wallets are even less popular, with preference under 20% for this type of payment.

These UK payment method statistics show that the online landscape is changing. While card payments are still popular for ecommerce shoppers, mobile and digital wallet payments are growing. Consumers and businesses alike are looking for innovative ways to pay the bills in the most convenient way.

GoCardless offers a direct debit solution enabling businesses to collect payments directly from customers’ bank accounts. It’s ideal for both recurring and one-off payments, with the business controlling the payment amount and date. It also enables global payment processing with a network covering over 30 countries and a built-in currency exchange. As more consumers and businesses alike prefer the convenience of direct debit, it’s worth adding to your list of options.

We can help

GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.