Top payment methods in United Kingdom: A guide on best ways to pay
Wondering what the most popular ways to pay are in United Kingdom? Explore the top payment options and choose wisely.
United Kingdom, with a population of around 69.87 million people, has a GDP of approximately 3.84 trillion making it the 6th largest economy in the world. The official currency of United Kingdom is the British Pound Sterling (GBP)
A large and diversified economy dominated by its services sector, particularly finance, alongside advanced manufacturing and creative industries. Post-Brexit, it trades heavily with the European Union and the United States and is a member of the CPTPP.
| Country | United Kingdom |
|---|---|
| Population | 69.87 million |
| GDP (USD) | 3.84 trillion |
| Global Ranking | 6th |
| Currency | British Pound Sterling (GBP) |
Spend abroad with the mid-market exchange rate - no markups, and no sneaky transaction fees.
What is the main payment method in United Kingdom?
The most popular payment method for in-store transactions in the UK is the contactless debit card, which has significantly surpassed cash in usage. Credit cards are also widely used, especially for online shopping, larger purchases, and to gain rewards or consumer protection benefits. For peer-to-peer transfers, bank transfers via the Faster Payments service, often initiated through mobile banking apps, are the standard.
How to pay in United Kingdom
Each country has its own way of moving money, and choosing the right method can sometimes be difficult. That’s why we have curated the most popular and best payment options for you to use in United Kingdom.
| Payment Method | Description | Type |
|---|---|---|
| Wise | Wise provides international money transfer services. It is known for offering transparent, low-cost currency exchange rates and fast transfers. Wise uses the mid-market exchange rate and charges a small, upfront fee, making it a cost-effective alternative to traditional banks for sending money abroad. The platform also offers multi-currency accounts, allowing users to hold and manage money in multiple currencies. | Online/In-person |
| Debit Cards | Debit cards are the most popular payment method in the UK for both in-person and online transactions. Contactless is the default for retail. | Online/In-person |
| Credit Cards | Credit cards are also a very common payment method, widely used for online shopping and larger purchases to gain consumer protection or rewards. | Online/In-person |
| Bank Transfers (Faster Payments) | The Faster Payments system allows for near-instant online bank transfers, which is a very common way to pay bills and make P2P payments. | Online |
| Cash (Pound Sterling) | While use is declining, cash is still an important payment method and is accepted universally, though some businesses are now card-only. | In-person |
Is PayPal available in United Kingdom?
Yes, PayPal is accepted in United Kingdom.
Cover all your international travel expenses with the Wise Multi-Currency Card
Whatever you need to buy during your trip, whether it’s a travel adapter, train ticket or an extra bottle of sunscreen, the Wise Multi-Currency Card has you covered.
You can spend like a local in 150+ countries, as this clever contactless card automatically converts currency at the mid-market exchange rate whenever you spend - for just a small conversion fee.
And for extra convenience, you can add your Wise Multi-Currency Card to your Google Wallet or Apple Wallet. Then you can travel even lighter and pay using just your phone, with no need to pack the physical card.
Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.