The 2025 Consumer Behaviour Survey shows UK payments are fragmenting, with security, inclusion, and tailored engagement key to adoption.
The UK’s payment habits are evolving – but the picture is more complex than a simple “digital takeover”. While mobile wallets and wearables continue to grow in popularity, cash remains deeply embedded in the daily lives of millions. Age, income, lifestyle, and trust all play decisive roles in shaping how we pay, with significant differences between groups.
Our 2025 consumer behaviour report, based on a nationally representative UK survey in partnership with YouGov, reveals a market in transition, where innovation is accelerating, but entrenched habits and access barriers continue to influence adoption.
A market in fragments, not a single wave
The data shows that payment preferences are diversifying rather than converging. Digital tools are gaining traction with younger and more affluent consumers, yet physical methods still dominate in certain communities. This fragmentation reflects both choice and constraint – from consumer trust in established methods to the availability of reliable digital infrastructure.
Security remains the anchor
Across demographics, security is the most important factor when making high-value purchases. While younger users are more likely to prize convenience, older and more risk-aware consumers prioritise safety. This highlights the need for payment products to offer strong protections without compromising usability.
Innovation adoption: led by some, resisted by others
Younger, tech-savvy consumers and those in higher income brackets are driving uptake of mobile wallets, wearables, and new payment services. But many consumers remain cautious – particularly in regions and groups with lower digital exposure. This suggests that the next phase of adoption will be segmented, with success depending on targeted engagement rather than a one-size-fits-all approach.
Fraud remains a constant threat
The survey confirms that fraud exposure affects all demographics, with certain scams hitting particular regions harder. This reinforces the need for layered, real-time defences that protect all users, regardless of payment method.
Why this matters for the industry
The 2025 findings challenge any assumption that “digital-only” is the inevitable or desirable end-state for UK payments. For providers, the strategic imperative is clear:
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Design for inclusion: ensuring that digital advances do not exclude those who rely on traditional methods
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Build trust alongside innovation: security and transparency will make or break adoption
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Tailor the journey: different audiences require different approaches to engagement and onboarding
Read the full report
Members of The Payments Association can access the complete dataset and detailed analysis in the 2025 consumer behaviour report. Log in to the Members’ Area to explore the full findings and strategic recommendations.
