UK consumers and SMBs push for smarter payments

The UK payments landscape is undergoing a shift as both consumers and small businesses demand smarter, more strategic financial tools.

According to Marqeta’s sixth annual State of Payments Report, UK users are no longer content with basic digital wallets or one-size-fits-all payment methods. Instead, they are seeking solutions that optimise each transaction, reduce friction and deliver long-term value.

Consumers Turn Strategic

UK push for smarter payments

For consumers, the shift is clear: payments are becoming a lever for financial management rather than a passive means of settlement.

The report highlights that 34% of UK consumers are interested in AI-powered wallets capable of automatically selecting the best payment method based on spending behaviour.

Nearly half (49%) want systems that can recommend whether to use debit, credit or Buy Now, Pay Later (BNPL) for any given purchase.

BNPL adoption illustrates this evolution. More than half (54%) of UK consumers have used BNPL services, far outpacing the 38% recorded in the US.

What began as a tool for spreading the cost of large purchases has expanded into everyday spending. Marqeta’s data shows that 16% of UK BNPL users now apply it to groceries and 14% to food delivery.

The average order value has dropped by 9% year-on-year, signalling a migration towards small-ticket, essential purchases. Consumers are leveraging BNPL not for indulgence but for cashflow management in a period of sustained economic pressure.

SMBs Demand Flexible Finance

For the UK’s small and medium-sized businesses, which generate £2.8 trillion annually, access to finance remains a stubborn hurdle. Despite their economic contribution, SMBs account for just £62.1 billion in loans.

Many owners turn to personal credit cards to bridge the gap, citing higher limits and better rewards than traditional business products.

Marqeta’s research shows 42% of UK SMBs rely on personal cards for business expenditure, underlining the need for modern business credit solutions and underwriting models that look beyond conventional credit scores.

Crucially, more than half (52%) of SMBs see payments as a strategic lever to streamline expenses and boost efficiency.

Ninety per cent are willing to invest in new solutions with higher upfront costs if they promise savings and operational improvements over time.

The Strategic Opportunity

This twin push—from consumers seeking optimised payment journeys and SMBs requiring flexible capital tools—creates an opening for payment platforms.

Providers that combine real-time data, intelligent credential management and integrated credit access could move beyond simple facilitation to become genuine strategic partners.

As the report makes clear, the future of payments in the UK will be defined not just by speed and security, but by intelligence.

The Digital & Card Payment Yearbooks provide the latest data on the European and Eurasian digital payment and card payment markets at granular country and regional level.

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