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Payments Council predicts consumer transaction habits for 2022


A report published by the Payments Council shows the latest developments in payment behaviour and forecasts what life could be like in the payments industry in 2022.

The report, ‘UK Payment Markets 2013’, looks at the way in which
consumers are likely to make payments over the next ten years.

Key statistics:

- Consumer card use will rise by 75% from nearly 10 billion payments in 2012 to nearly 17 billion in 2022, driven primarily by increased debit card use and acceptance.

- The number of cash payments will fall from 21 billion in 2012 to around 14 billion in 2022, as people increasingly use alternatives such as cards and automated payments.

- Consumer cheque transactions are projected to continue to decline – from 477 million cheques in 2012 to around 186 million in 2022.

- Direct Debit use by consumers will grow by 20% to around 3.7 billion payments in 2022 – driven by increased uptake of new regular commitments and a growth in the size of the adult population.

- Mobile payments and internet banking will help drive up consumer use of one-off payments from their accounts from 356 million payments in 2012 to around 1.5 billion in 2022.

- Population growth and economic growth will mean consumer payments are worth over £2 trillion in 2022, up from £1.3 trillion in 2012

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% more wage payments will be paid to bank accounts in 2022 compared to current levels.

We will continue to manage our money online and via our mobiles. There are now many ways in which we can check our accounts and move money around, and in 2012 around 32.5 million people accessed their bank accounts using a remote channel. Around 10 million people did so using a mobile device.


The Money

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"Internet shopping and plastic card use has seen large growth in payment volumes in recent years. "
The Money