From the widespread use of AI and crypto in SMB payment systems to growing consumer appetite for real-time earned wage access (EWA) and biometric payments, Marqeta’s sixth annual State of Payments report reveals that the UK is redefining both how money moves and what consumers expect from payments.
The annual State of Payments report expanded this year to survey a total of 1,000 small to medium-sized businesses (SMBs) along with 3,000 consumers across the US and UK, finding that consumer demand for flexible, real-time, and digitally integrated payment experiences is increasing. Over one-third of UK consumers surveyed will avoid shops and websites that don’t offer them a choice of different payment options, placing pressure on businesses to invest in their payment capabilities.
Marcin Glogowski, head of international, Marqeta, said: “From real-time wages to AI-led fraud detection, we’re seeing a convergence of innovation that puts the UK at the forefront of financial infrastructure modernisation. As today’s younger generations begin to comprise more of the economy and workforce, these trends will only accelerate, with their appetite for new, seamless forms of payment clear. Businesses need to adapt now to align with this accelerating shift in demand.”
Trending payments
Interest in Buy Now Pay Later (BNPL) services remain strong and is no longer just for big-ticket items, with 16 per cent of UK consumers surveyed who use BNPL now using it for grocery shopping and 14 per cent for food delivery. However, new methods such as biometric payments are moving from novelty to norm, with 58 per cent of UK consumers surveyed stating that they’re likely to use biometric methods such as facial recognition or fingerprints to make payments in the future.
Additionally, the shift away from legacy systems continues apace. Nearly six in ten (59 per cent) UK consumers surveyed say they could go an entire month without using cash, and 44 per cent would eliminate cheques altogether if given the option. Gen Z is accelerating this shift with 63 per cent of UK consumers ages 18-24 reporting they’ve never written a cheque in their lives.
Blockchain and crypto
The research findings indicate that blockchain has moved from the margins to real business applications in the UK. With 41 per cent of firms surveyed already using blockchain to manage cross-border payments, inventory or other business processes, it’s clear that digital asset infrastructure is maturing. The UK’s active regulatory engagement with crypto and digital finance is helping to lay the foundation for more mainstream applications of decentralised technologies.
While consumer crypto usage is still developing, the corporate adoption of blockchain technologies signals a long-term shift toward programmable money and distributed ledger infrastructure in payment environments. 50 per cent of UK SMBs surveyed that do not currently accept cryptocurrency payments are likely to accept them in the next two to three years.
Additionally, almost a quarter (21 per cent) of UK consumers surveyed currently own cryptocurrency, using it for payments such as online and in-app (28 per cent), for overseas transfers to friends and family (26 per cent), and to make purchases in store (17 per cent).
Embracing payments innovation
The report found that SMBs are adopting AI tools within their payments stack, with many deploying AI for fraud detection, transaction categorisation, and real-time risk management. The data signals that intelligent payments are becoming embedded in mainstream infrastructure. In fact, over half (52 per cent) of UK SMBs surveyed see payment systems as a strategic part of their business and nine in ten now view payment systems as an area for efficiency gains and cost control, not just operational expenditure.
“UK firms aren’t just talking about payments innovation, they’re actively seeking ways to deploy it and boost operational efficiencies for their businesses,” said Glogowski. “The results from our latest State of Payments research reveal that both UK consumers and businesses are driving a shift towards emerging payments technologies like AI, blockchain, and open banking solutions, and are setting the pace for what future-ready financial systems could look like.”
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