The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

The UK payments and open banking ecosystem stands at an inflection point. With a digitally mature consumer base, a high level of trust in innovation, and major infrastructure reforms underway, the conditions for transformative change are stronger than ever.

Our Strategy & Payments and Open Banking Survey 2025, now in its fourth edition, surveyed over 5,500 consumers across 11 countries — and the UK results speak volumes. From shifting payment preferences to growing acceptance of non-bank financial services, it’s clear: UK consumers are ready to embrace the next generation of digital finance.

Cash is no longer king

In 2018, over a quarter of UK consumers preferred to pay in cash. In 2025, that number has fallen to just 13 per cent. Instead, mobile wallets and debit cards dominate — particularly among younger users. But this isn’t just about technology. It’s about convenience, speed, and embedded value.

For banks, PSPs, and retailers, this signals an urgent need to rethink the physical and digital customer experience. Frictionless journeys and value-added services — not simply functionality — will define future relevance.

Open banking: trust is building

UK consumers are becoming increasingly open to sharing their data for benefits. 67 per cent of respondents are willing to share financial data if it leads to tangible rewards or improved services — placing the UK among the top three countries surveyed.

This high level of readiness underpins the UK’s push toward a commercial model for Open Banking, where data becomes the foundation for smarter propositions — from credit comparisons and savings tools to personalised budgeting and bill management.

CBDC: Europe signals consumer interest

One of the most notable survey findings comes from the Eurozone: 34 per cent of European consumers say they would consider using a Digital Euro — either in place of cash or existing digital methods. Despite limited public education and a launch still years away, this early signal highlights growing openness to central bank digital currencies (CBDCs).

Implication for the UK: As the Bank of England progresses with its own digital pound exploration, these findings underscore the importance of a transparent, value-driven CBDC strategy that resonates with public needs — especially around privacy, ease of use, and coexistence with other payment methods.

A2A Payments: the next chapter?

With real-time payment planned platform upgrade and support for Payment Initiation Services (PIS), the UK is technically well-positioned to expand account-to-account (A2A) payments — even at the point of sale. But commercial models, consumer incentives, and merchant adoption must now follow.

As other countries build strong local wallet ecosystems and loyalty integrations (as seen in the Nordics and Poland), the UK will need to respond with its own innovation in value and user experience — not just rails and regulation.

 Non-bank disruption is real

In perhaps the survey’s most striking UK result, 69 per cent of consumers say they would consider banking with a non-bank provider, more than double the figure from just two years ago. Brands like PayPal (48 per cent), Google (27 per cent), and even WhatsApp (22 per cent) are now seen as viable alternatives to traditional banks.

The message is clear: consumer loyalty is no longer guaranteed. Players who combine seamless digital experience with financial insight and embedded value will increasingly shape the market.

Where do we go from here?

The UK has the ingredients to lead globally — strong regulation, open APIs, progressive consumer behaviour, and a robust infrastructure roadmap. But leadership requires action. Industry players must align on outcomes, reimagine business models, and invest in digital experiences that earn consumer engagement and trust.

We invite you to explore these insights in more detail.