UK e-commerce market projected to exceed £260 billion by 2025, Worldpay from FIS study finds
The UK’s e-commerce market, already the world's third largest, is forecast to grow by nearly 26 percent through 2025 to reach over £260 billion in transaction value, according to a new report released today from financial technology leader FIS® (NYSE: FIS).
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The 2022 Global Payments Report by Worldpay from FIS examines current and future payments trends across 41 countries in 5 regions. Regarding 2021, the report found the shift to online continued with 13.9 percent growth in global e-commerce, while the 13.4 percent growth in point-of-sale (POS) transaction value reflects the steady recovery from the impacts of the COVID-19 pandemic.
e-commerce Payment Trends
The Worldpay from FIS report found:
• The e-commerce market in the UK is projected to increase by nearly 26 percent between 2021 and 2025 to over £260 billion.
• Digital wallets (32.3 percent) accounted for the largest share of UK e-commerce transaction value in 2021, followed by credit/charge cards (26.9 percent) and debit cards (23.9 percent).
• Digital wallets are projected to maintain their crown as the most popular online payment method, accounting for 34.5 percent of e-commerce transaction value by 2025.
• BNPL accounted for nearly £13 billion of UK e-commerce spend in 2021 and is projected to exceed £16 billion in 2022.
• BNPL is also the UK's fastest growing online payment method and is projected to double in value by 2025 to account for 12.1 percent (nearly £32 billion) of UK e-commerce spend.
POS Payment Trends
The Worldpay from FIS report found:
• The UK's POS market is projected to increase by 23.3 percent between 2021 and 2025 when it is projected to account for £1.2 trillion in transaction value.
• Mobile wallets and BNPL are the fastest growing payment methods at POS in the UK and are projected to account for 14.7 percent and 5.3 percent of in-store transaction value respectively by 2025.
“According to the study, much of the pandemic-driven shift to digital payments has now been normalised across the UK, making the opportunity for many e-commerce businesses larger than ever before,” said Pete Wickes, EMEA General Manager, Worldpay Merchant Solutions, FIS. “As more consumers see the benefits of alternative payment methods (APMs), businesses must find ways to innovate and create technology-centric strategies to meet the diverse needs of their customers.
“The study shows that the UK is now entering a new phase of adoption of BNPL and digital wallets. While installment payments are not a new concept, both banks and merchants can no longer ignore the fact that consumers are seeking out BNPL as a more affordable and convenient alternative to credit cards.”