UK Finance report shows impact of coronavirus (COVID-19) on payments in 2020

UK Finance report shows impact of coronavirus (COVID-19) on payments in 2020

UK Finance has released its 2021 Payment Markets Report, an analysis of all forms of payments over 2020, which shows the impact the coronavirus (COVID-19) pandemic and resulting lockdowns had on payments behaviour in the UK. For the first time in six years, the total number of payments in the UK declined, falling by 11% to 35.6bn.

While consumers continued to make the vast majority of all payments (86%), the report demonstrates the reduced opportunities for people to spend money during the pandemic, with the number of consumer payments falling by 13% to 30.7bn. Meanwhile, the number of payments made by commercial organisations, government and not-for-profit organisations increased slightly to 4.8bn, representing 14% of payment volumes but 80% of the total value of payments.

The report details some notable changes in the type of payments made by people, with significant growth in contactless payments, mobile payments and internet banking, alongside a continued reduction in cash usage. While overall card payments in 2020 declined, their share of payments increased with over half (52%) of all payments being made by cards in 2020. Cash use fell by 35% compared to the previous year

Sources:

• Contactless now accounts for more than a quarter of all UK payments

• UK Payment Markets 2021

• UK Payment Statistics 2021

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