A new report published by the Payments Council shows the latest developments in UK payment behaviour, and forecasts what life could be like in the payments industry in 2022.
The report, entitled UK Payment Markets 2013, looks at the way in which consumers are likely to make payments over the next 10 years.
Mobile payments are expected to become a major payment channel. Some mobile payment services are already available and the range is expected to increase – next year the Payments Council will launch a new service to make secure account-to-account transfers using only a mobile phone number.
The number of people with internet-connected mobile devices is also set to grow markedly. The report forecasts that many more people will be paying friends, family and small businesses using phones and tablets by 2022.
Internet shopping and plastic card use has seen large growth in payment volumes in recent years. Nearly 40 million people bought goods or services online last year, mainly using plastic cards, and it’s expected they’ll do so even more over the next ten years.
The report forecasts that alongside more use of contactless cards and mobile payments, e-commerce will be a major factor in the near doubling of consumer card use, from nearly 10 billion payments in 2012 to an estimated 17 billion in 2022.
Cash and cheques usage will fall as consumers use other payment methods. Cash payments are forecast to fall by around a third to 14 billion in 2022, largely driven by consumers’ increased use of contactless cards in shops and mobile phones to pay friends and family. Cheques, too, are set to fall – they are forecast to be used less than half as much in 2022 as they are currently.
However, some things will stay the same. Regular household and personal bills such as mortgages, utility bills and gym subscriptions will continue to be made using Direct Debit. The number of wages paid directly to bank accounts will continue to grow. Around 13 percent more wage payments will be paid to bank accounts in 2022 compared to current levels.