By Chanel Smith EMEA Editor (@PYMNTS_EMEA)
The UK Payments Council is analyzing Britain’s current payment behavior to help foreshadow what the payments industry will bring by 2022.
The council released a new report, titled “UK Payments Market 2013,” which uses recent consumer trends to prophesize what the next 10 years of payments will be like. PYMNTS.com breaks down the report to reveal current statistics, future predictions, and discuss key drivers and dominating payment channels.
The report predicts that mobile payments will become the breakthrough payment channel in the UK within the next decade.
There are already various mobile payment services available and the Payments Council believes services will increase. The council reported that the number of consumers with Internet-enabled mobile technology will increase greatly, and forecasted that many consumers will likely be using mobile phones and mobile tablets to make person-to-person payments by 2022.
ECommerce And Card Payments
The UK Payments Market report estimated that consumer card usage will increase by 75 percent (17 billion payments in 2012 to almost 17 billion by 2022) over the next 10 years. Researchers state that the increase in consumer card use will be made possible by increased debit card use and card acceptance in the country.
In 2012, over 40 million British consumers purchased products or services on the Internet, and the majority of these consumers used plastic cards for payment. The report indicated online shopping and card payments will continue to grow over the next 10 years.
The study stated that the growth of contactless cards, mobile payments and online shopping would be the major contributors for the estimated doubling of consumer card use, jumping from 10 billion payments in 2012 to a predicated 17 billion by 2022.
Cash And Paper Checks
The council reported that cash and paper check circulation in the UK will drop as consumers opt for alternative payment methods. The report predicts that cash payments will fall by a third (from 21 billion in 2012 to 14 billion) by 2022.
Researchers indicate the fall in cash use will largely be attributed to the increased use of contactless cards in retail shops as well as increased mobile phone payments. In 2012, there were 477 million checks, and by 2022 this number is expected to drop to just 186 million.
The future of checks look insufficient as well, and has been predicted to fall by half by 2022.
Adrian Kamellard, Payments Council Chief Executive, commented:
“It’s fascinating to see how much of the groundwork we’re laying down now will work out in 2022. The next few years will be an exciting time for the payments industry.”
To read the full report at the UK Payments Council website click here.