United Kingdom Digital Payments Market Revenue Grows at a CAGR of 15.2%

Introduction

Straits Research published a report, “UK Digital Payments Market Size & Outlook, 2026–2034”. According to the study, the market size is valued at USD 11.7 billion in 2025 and is projected to expand to USD 43.7 billion by 2034, registering a compound annual growth rate (CAGR) of 15.2%.

Market Dynamics

The UK Digital Payments Market is supported by the rapid shift toward cashless transactions, rising consumer adoption of contactless and mobile wallet payments, together with strong migration toward real-time account-to-account (A2A) transfers enabled through Open Banking. Growing demand for faster, frictionless checkout experiences across retail, transportation, hospitality, and online commerce continues to fuel transaction volumes. The increasing use of digital identity verification, loyalty-linked payments, and seamless in-app purchasing is further strengthening the country’s digital payment ecosystem.

Increasing involvement of banks and fintechs in developing integrated payment platforms, expanding the reach of merchant acceptance infrastructure, and deploying advanced fraud-prevention systems is emerging as a key driver for market momentum across the UK. The advancements in embedded payments, recurring billing frameworks, and QR-based payment acceptance further unlock new opportunities for both merchants and service providers. Aggregately, these are contributing toward accelerating the pace at which the UK moves toward an integrated, secure, and digitally driven financial ecosystem for consumers and enterprises alike.

Market Highlights

• Segmental Leadership: The NFC & Contactless Card Payments segment holds the largest share (41.27% in 2025), while Mobile Wallet Payments record the fastest CAGR (17.56%).
  • Technology Outlook: Mobile Apps dominated the market in 2025 with a revenue share of 38.42%, since mobile applications have become the central interface.
• End-Use Application: The Transportation segment is projected to grow the fastest (CAGR 16.47%), driven by an accelerated shift toward fully digital, tap-and-go mobility across public transit networks.

1. Worldpay (FIS)
2. Visa UK
3. Mastercard UK
4. PayPal UK
5. Klarna
6. Barclaycard
7. Revolut
8. Stripe UK
9. TransferWise (Wise)
10. Square UK
11. Adyen UK
12. Zettle by PayPal
13. GPS
14. com
15. SumUp
16. GoCardless
17. Amazon Payments UK
18. Monzo
19. Starling Bank
20. NatWest Payments
21. Others

1. By Payment Type
   1. Mobile Wallet Payments
   2. QR Code-Based Payments
   3. NFC & Contactless Card Payments
   4. Online Card Payments
   5. Bank Transfer
   6. Digital Currency (e-CNY) Payments
   7. Other Types
2. By Technology
   1. Mobile Apps
   2. Hosted Payment Gateways
   3. API-Based Payment Integration
   4. Contactless Payment Technologies
   5. Other Technologies
3. By End-Use Application
   1. Retail
   2. Food & Beverage
   3. Transportation
   4. Utilities
   5. Government & Public Services
   6. Financial Services
   7. Healthcare
   8. Others

Competitive Players

Recent Developments

Segmentation