The United Kingdom has some popular payment methods and to run a business here you should know what are those. Yes, it is predictable that the economy is getting digital like any other economy in the world. But the known payment types in a country can always differ from the other. Business owners especially from high-risk industries need to work on this aspect seriously. In the world of commerce, things can be very specific sometimes.
Here are the popular payment methods in the United Kingdom that you should know about.
Yes, you got it right. We are talking about credit cards and digital cards, which are among the most popular payment options as we already know. When it comes to online sales in the UK, the cards card payments occupy up to 53% of total sales. Debit is an important payment method in the UK. With the increase in contactless payments, tap cards are also in use now.
Benefits of card payments –
- Convenience to make faster payments is the topmost reason.
- Safety is uncompromised nowadays due to 3D secure payments.
- If used wisely, it helps improve credit score with every timely installment payment.
- Takes the user closer to the digitized and paperless economy.
A digital wallet is an electronic wallet that allows a user to make electronic transactions while using digital currency units to purchase a product or service. Perhaps it needs no more detailed introduction because people across the world are already using it. The widespread use of digital wallets explains why the progressive economy of the United Kingdom embraces it as one of the most convenient payment methods.
Benefits of using digital wallets –
- It allows you to be more organized as it gives strong security
- The users get rewarded for every purchase they make
- A faster checkout facility is available through contactless payments
- Wide use allows the merchants to expand the business
The new payment cards have joined payment trends and they have become popular quite fast. Virtual cards are electronic cards that are not issued physically by banks like credit or debit cards. It is created by using credit or debit card details. Normally there are no charges for them and can be used conveniently for making payments. Virtual cards are making a fast place among the most popular payment methods in the UK.
The benefits of virtual cards are –
- The virtual cards give uncompromised security during a purchase
- It has a lower cost because there is no issuing charge.
- The user can always track their spending to get an idea of overall expenses.
- Users can customize their spending limit and can also freeze or close it.
Buy now pay later
In this payment method, the provider of Buy Now Pay Later pays the entire bill of a purchased product or service. The customer then pays off the amount later to the provider without interest in small installments. The UK merchants are connecting with this payment service quite fast because it is convenient for the customers of every sector.
Benefits of buy now pay later –
- It is interest-free, and the customers do not need to worry about hefty installments
- Friendly payment option even for younger people like students, underemployed, etc.
- The installments are small and affordable, and pre-payment is also possible.
- It is simple, convenient, and an affordable alternative to credit cards.
Bank transfer dropped for some time during the pandemic, however, now it is on rising again, especially in the UK. It is not an exaggeration to mention that bank transfer is among the most popular Payment Gateway in the United Kingdom. As the banks also give facility for direct debit in case of regular payments, it is a popular way of taking payments among the merchants.
Benefits of bank transfer payments –
- Money travels through a safe banking system
- Fully electronic payments are convenient and speedy
- The payment process is customer-friendly
- No payment reversals happen which is good for merchants
United Kingdom people have no problem with using cash but it is true and we all know that in the last three years the cash payments have dropped. The pandemic made the UK citizens avoid cash payments. If you take an example, only 17% of e-commerce transactions happened using cash. However, if the time gets normal, cash payment should make a comeback for sure. It is because there are many good reasons to make cash payments.
- It makes you control spending because you realize it closely when you give money.
- No security issues because cash does not need to travel through any network.
- Buyers do not need to pay any transaction charge; it saves money on recurring payments.
- Cash payments are always good when it comes to emergency circumstances.
How merchants can get more profit by working on multiple ways to accept payments in the United Kingdom?
Merchants always plan to expand to new horizons and earn more profit and money. For that, they need to make a smoother reach to the customers and customers use their preferred payment ways. In such a situation, all merchants need to enable as many payment options as possible. As the UK natives have their preferences, it is good for the businesses to accept money in different ways.
The businesses can sell their services and products to more people and can earn a big profit as compared to those who have fewer payment options. EskayPay, the well-known payment gateway can install any payment channel and method on your business website. Contact now and get your query solved and start taking payments from your UK customers soon. You can also get assistance to get a merchant account through an affordable deal.
The United Kingdom is always ready to embrace any new change, however, at the same time, it is still a traditional country. The presence of cash payments (which may be small in quantity) and a bank transfer system explain it well. You as a merchant need to make parallel moves with the change in the payment trends. Your merchant account approval and payment gateway choice depend a lot on your payment methods. This is something that is decided by people or the customers you have. You can only provide customers with the facility they want to pay for the things, it is not a complicated way to grow bigger in the market and attract more customers. Right?