The UK has been at the forefront of e-Commerce since it’s inception. As an early adopter, the UK’s e-Commerce market is now in maturity – and growth is predicted to be steady rather than dramatic. The market is still expected to grow by 23% between 2016 and 2020, to reach US$213 billion.
Most of this growth is predicted to come from mobile – as e-Commerce turnover here is forecast to increase by almost 50%, to US$52 billion by 2020.
Obviously, the UK is entering a period of uncertainty – however the opportunities for e-Commerce are still strong, especially with the growth of flexible delivery options in this market.
UK Payment trends
Debit and Credit cards dominate the UK payment landscape – constituting 57% of all e-Commerce payments. When it comes to Card Schemes Visa have a huge market share (80%), with MasterCard and American Express owning 18% and 2% market share respectively.
However, the share of card payments is expected to decline over the next few years, as they come under attack from e-Wallets. Currently, in the UK, 22% of e-Commerce payments are made via e-Wallets. Apple Pay, Samsung Pay and Android Pay are just some of the recent entrants into the e-Wallet space. And as the spending power of Millennials increases, e-Wallets are likely to grow in popularity.
Cash on Delivery is also fairly popular in the UK – with almost 1 in every 10 e-Commerce payments being made using this method.
If your online business is targeting British consumers, then its key you consider accepting a range of e-Wallet options alongside credit and debit cards.
Motie Bring, General Manager, UK Global eCom, Worldpay
“eCommerce is one part of the UK economy that continues to grow. Our team of experts can help you keep on top of changing consumer payment preferences, both at home and abroad, ensuring you maximise on the exciting opportunities ahead.”
Beyond the UK
As well as supporting e-Commerce payments in the UK, we can also assist your global business in over 146 countries.
Our annual Global Payments Report covers these markets in more detail.You can download the report here
UK Payment Preferences
If you’re unfamiliar with any of the popular payment methods in the UK...Find out more here