Ecommerce in the United Kingdom is estimated to be worth more than £192 billion, or just under 8% of the country’s GDP. But what exactly is the technology underpinning all of these transactions? Just what are the most commonly used payment methods for online shopping within the UK?
A 2018 survey of ecommerce in the UK shows that PayPal is far and away the most commonly used payment method in the country, with 40.8% of shoppers using it at least once that year. This is perhaps of little surprise, given how long the payments giant has been on the scene.
Aside from PayPal, other digital wallets, such as Google Pay, Amazon Pay and Apple Pay are all increasingly common. Although they are yet to replace plastic, estimates suggest that by 2024, these mobile wallets could account for 40% of all payments in the UK, both online and offline.
A spokesperson for PayPal said: “The coronavirus pandemic has accelerated the shift towards digital and touch-free payments by two to three years”.
Despite the increased use of digital options, good old fashioned credit and debit cards also featured prominently in the list. Plastic remains the second most commonly used payment option, according to a recent Worldpay survey.
But perhaps more surprisingly, the humble bank transfer also features prominently among British online shopping habits, with around 13% of people making use of these transactions.
Some of the least popular options among those shoppers surveyed include “Buy Now, Pay Later” schemes, which were used by 7.4% of people in 2020; Direct Debit (4%); Cash on Delivery (3.3%); and pre-paid debit cards (1.2%).
Pre-paid cards are actually a fantastic way to control spending, and are ideal for younger shoppers, or those of us with poor credit, who may not have a bank account or access to credit cards.
There is a huge range of prepaid card options available, with dozens of financial institutions getting involved. Pockit, thinkmoney and even Tesco Clubcard are all offering Brits the chance to get their hands on this convenient and flexible payment method.
While confined to our homes during the COVID-19 pandemic, more of us than ever before turned to online services to ease our frustration. It was not only online shopping that saw a pandemic-based boom, but Brits made more use of music and video streaming services, telecommunications software like Zoom and even online gambling sites.
But as a result of our increased online activity, we also saw a significant rise in online fraud and cyber crime. According to the NFIB, there were 388,447 reports of fraud and cyber crime across the country, worth an estimated £2.1 billion, between February 2020 and the end of March 2021.
While online shopping saw one of the biggest increases in the number of scams, with fraud rising by a third in the past year, other sectors were also greatly affected. The biggest target in the UK is HMRC, but banking, grocery shopping and even online betting have all been hit with phishing scams in recent months.
Many are calling for amendments to the government’s Online Safety Bill, which would require online platforms to take more responsibility in protecting consumers. None more so than Jenny Ross of consumer champions Which?
Ross said of the matter: “Fraudsters have added to the suffering that many people have faced during the past year by using the pandemic and the increase in online shopping as a springboard for tricking a growing number of victims.
“Tech giants, banks, telecoms providers, regulators and the government need to keep up with the evolving tactics of scammers and make sure people cannot be targeted when going about everyday activities like shopping”.
But until that happens, consumers should take steps to protect their personal data.
Look out for emails that contain spelling errors or poor grammar. Check website addresses for the secure HTTPS protocol at the beginning of the URL.
Additionally, do your research carefully. One other common way of using online payment mentioned here already, is online betting. Choose a site that compares, reviews, and offers serious and legal UK bookmakers. They need to be licensed, and protect you by using the latest encryption technology.
If you have any doubts about the authenticity of any communications or transactions when shopping online, be sure to contact the company directly and seek advice.
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