With the rise of e-commerce businesses globally, the UK market has become impossible to resist by the big players in e-commerce and the rise of fast payments with NFC enabled devices (such as smartphones and watches). The current growth rate in which e-commerce and online payments are growing as a whole is around 10.5% annualy and by the looks of it, it just wont stop there. After the demonetization, a drastic change has been observed amongst the people opting for online payments, rather than using the conventional way of cash transactions. With this, a few popular payment methods stand out from the rest due to their price, security, reliability and/or easy-to-use features.
Digital Payment Methods In UK
Today, having a credit card in the UK is a must, there is a wide acceptance for this method in particular and it is growing as time goes by. According to the UK Cards Association in 2017 registered an annual growth of 8.7%.
The most popular credit cards include Visa, American Express, and Master Card.
Another popular method of payment is using debit cards. All banks provide a debit card through which one can efficiently transfer the money saved in their account. The popular ones include Visa, MasterCard, Maestro, and various debit cards offered by different banks. This is by far the most used method and it is already becoming a standard as far as electronic payments.
In other words: When it comes to online payments, debit cards rule the market. Last year, 45% of British online purchases are made through debit cards.
A global presence, PayPal, through a combination of technological innovation and strategic partnerships, has created a medium through which one can easily transfer money as well as manage it. Users get the choice and flexibility while sending the payments, or while paying or receiving the payment. It is an American company started way back in 1998, and now everyone is using it worldwide. It also accepts credit/ debit card, mobile banking, etc. PayPal is used in more than 200 markets globally. It enables the user to receive money in more than 100 currencies, withdraw funds in more than 56 currencies. Anyone can register a free account on PayPal, but the transaction fee will be 3.4% plus $0.3 USD for all merchant payments.
Just so you know, Paypal represents an approximate 23% of all electronic payments in the UK.
The mobile wallet system enables the users to carry digital cash. For this, users need to link their credit or debit card information to their mobile wallet app on their phone. It can then be used to transfer money online from/to your mobile wallet. It is undoubtedly a great option to enjoy digital currency. Instead of making payments using your plastic cards, you can make payment using your mobile wallet.
You can use Apple Pay to pay as you go on bus, Tube, tram, DLR, London Overground, TfL Rail, Emirates Air Line, River Bus and most National Rail services in London. You can add supported payment cards to Apple Pay and then use your iPhone or Apple Watch to make contactless payments.
Some major retail stores are already supporting apple pay on their stablishments for a faster and on the go purchase dynamic, this method offered by Apple is unlike android pay and samsung pay widely accepted and part of the day to day transactions due to its implementation on the Underground system.
Offline Payment Methods In UK
Apart from the online payment methods, there are still few ways which are prevalent in inside the United Kingdom offline. Have a look:
There is a high reliance on cash when doing business, which is why Cash On Delivery (COD) options should not be ignored when it comes to the UK market. Still, people prefer to opt for COD while shopping online. Thus, most of leading e-commerce business has integrated the option of COD in their payment options. People consider it's safe to get the product first and then pay for it. That is why, COD is facilitated by some companies in the UK.
The cash on delivery service guarantees secure payment for your goods upon delivery. Shipments labelled "cash on delivery" are only handed over to the recipient against payment for the goods when they reach its destination. It is not a widely used method but one with great conviniences depending on the business model of the merchant.
Emerging Payment Methods
The sign for the future suggests a surge in the use of e-wallets, tech giants are competing for tooth and nail to take the biggest chunk of the market. As this sector of the market is still new and developing, there have been no clear winners to come out yet. E-wallets look set to replace the physical wallets filled with cards and push people to use their phones when making purchases.
Let us look at some of the popular emerging payment options that will be popular in the coming years.
The Samsung Pay, describes itself as being “More than a wallet”, while in principle the methods work the same way as its competitors, it does have the added incentive of gaining rewards on daily purchases made, which can then be used on future purchases. This too is a platform specific option meaning it is available for Samsung devices only. Of course, there is a list of devices within the Samsung world were the Samsung Pay becomes an available option.
Another feature that makes Samsung Pay unique is that in addition to supporting NFC-based terminals, it can also use Magnetic Secure Transmission (MST) technology. Which means devices supporting Samsung Pay can transmit payment signals to normal credit and debit card terminals.
Existing separately until recently, Google is uniting its Android Pay and Google Wallet services under Google Pay.
Android pay was created as a full mobile payment system by Google, with which people can make purchases online or in the physical world! While this was only to be used on Android devices, now people can use their Google credentials to make purchases with a few clicks!
Packed with many features, users can use the sensitive information such as shipping address, credit or debit cards that were stored on Chrome, Google Play store, Youtube or Android Pay. This way, the information is easily sent to the Merchants and purchases can be done more efficiently and easily.
Online payment methods are a must in todays economy, specially if you sell or buy inside the United Kingdom, specially with the growth of e-commerce. Online customers already feel comfortable and secure while buying and it is just a matter of time until it becomes the only payment method available for the regular Joe. If you are on the hunt for a easy way to have an integrated payment method, Jumpseller is integrated with many Payment Gateways, just create your online store and choose the option that suits you best!