The world is marching toward a future where everything is being digitized at a rapid rate. Among the fastest-evolving trends, is the way we transact and pay for things.
There are many new and popular payment methods available in the UK now, compared to just a decade or two earlier. However, many developed countries all seem to be following the same course. Here’s a comparison of the UK’s most popular payment methods compared to other countries.
New-Age Payment Systems
In recent years, there has been a sizable move toward digital payment systems in the UK. However, as we take a look at traditional and new-age payment methods, among the fastest-growing payment systems, there’s one that stands out for how unique it is.
Cryptocurrency
Cryptocurrency has taken the world by storm, both as a disruptor to financial markets, a store of value and as a growing alternative to traditional payment methods. That method has become increasingly more widespread in online casinos. Especially among players who prefer non Gamstop casinos, the use of cryptocurrency payments is skyrocketing. The allure is that casinos which are not gamstop are less restrictive, whereas, if they also accept crypto payments, tend to come with faster payout times, and usually provide a more private and anonymous experience.
Despite crypto’s growing influence on the iGaming scene, it’s a lot more difficult to use it in physical stores or to buy stuff with it outside of major cities like London, That’s because certain aspects of cryptocurrency are now heavily regulated in the UK. For instance, the Financial Conduct Authority (FCA) has banned UK firms and retailers from offering or selling crypto derivatives and Exchange-Traded Notes (ETNs) that reference specialised classes of crypto assets.
There are also some stringent measures in place when it comes to crypto exchanges being allowed to register in the UK. Some people argue that, as a result of too restrictive a regime, many exchanges do not operate there or have had to suspend services. However, in contrast, cryptocurrencies are becoming more widely accepted globally. For example, while according to Statista, England only has around 230 Bitcoin ATMs, the USA has around 31,000 of them nationwide.
The NPA
However, despite the UK’s reluctance to be as liberal with cryptocurrencies as other nations, when it comes to other new-age payment systems, it often stands out. For example, financial regulatory overhauls like the New Payments Architecture is an initiative that aims to revolutionise how interbank payments are processed. It aims to increase things like speed, security, and innovation within interbank payments and is largely achieving those goals.
Contactless Payments
As the mobile age continues to grow, contactless payments are also firmly on the rise globally and within the UK — now accounting for more than a quarter of all payments there. Between things like mobile money wallets, QR payments, and contactless systems available throughout retail spaces, these kinds of payments are becoming more popular every day.
It isn’t hard to understand why since they represent a more modern approach that better caters to the contemporary person’s routines on the go and the fast-paced lifestyle of modern, first-world societies. Built for speed and convenience, it’s easy to imagine that these types of payment systems will one day replace what we think of as traditional payment systems altogether.
Traditional Payment Systems
The following are ‘traditional’ payment systems still very prevalent in the UK and around the world. As we briefly discuss these, it’s perhaps sobering to note how just a decade or two ago, these systems were considered new-age themselves when compared to things like cheques and personal deposits.
Debit and Credit Card Payments
Now considered the OG of payment methods, debit and credit cards were game changers when they were first introduced. The ability to swipe at stores, withdraw cash from ATMs, complete online payments, and order things or shop without leaving home has been revolutionary.
The convenience of it all means card payments in general (debit and credit) are still the leading payment method in the UK and in most other regions around the world. In the UK, they account for some 57% of all payments made, with that number increasing when it comes to online payments.
e-Wallets
Also known as digital wallets, major e-wallet payment apps like PayPal, Apple Pay, and Google Pay are rising every year — both in the UK and around the world. In the UK, they have proven particularly popular, with 1 in 5 Brits reportedly using e-wallet apps on their phones. This has made in-person shopping very convenient and is widely embraced by younger people. At the same time, cash as a payment is rapidly declining, particularly in countries like China and Sweden. However, in many parts of the world, cash is still king.
EFTs and Cash
Although still widely used in the UK and around the world, the rates of usage for other traditional payment methods like cash and EFTs depend on factors like the economic strength of a region and access to other payment systems. While cash is still a universally accepted payment method, its use is rapidly declining in countries with highly developed economies.
However, in places like the Middle East, even in wealthy countries like the UAE, things like interest agreements and credit cards are strictly regulated by Sharia Law. As a result, cash remains a popular convention there, with most online shopping being paid for by Cash on Delivery options. However, the use of debit cards is rising there since they use the customer’s money and not the bank’s.
Conclusion
Comparing the payment systems favoured by the UK and other parts of the world makes it clear that there’s a huge shift toward more secure, fast, convenient, and digitised payment systems the world over. While these may differ according to the conventions or economic stability of a country, for the most part, debit and credit cards, and even cash, are still popular in many parts of the world.
However, in the UK, driven by massive shifts in industries like iGaming and crypto gambling, cryptocurrencies are also becoming a popular choice as an alternative to traditional payment systems. Meanwhile, e-wallets, contactless, and mobile payments are also growing more popular by the day as the world continues to relentlessly march forward toward a more cashless and decentralised financial system.
