A new report highlights shifts in consumer and small business payment preferences in the United Kingdom, with a rising demand for more flexible, data-driven solutions.
Marqeta's sixth annual State of Payments report surveys 1,501 UK consumers and 500 UK small to medium-sized businesses (SMBs), examining attitudes and behaviours around payments in 2024. The findings are supported by data from Marqeta's platform, which processed USD $300 billion in payments in 2024.
Consumer interest in smarter payments
The report reveals that UK consumers are increasingly focused on extracting more value and convenience at the point of purchase. Digital wallets powered by artificial intelligence are drawing attention, with 34% of UK respondents interested in solutions that optimise payment choice by analysing spending habits and preferences.
Nearly half (49%) of those surveyed would find it useful if a wallet could recommend whether to use credit, debit, or Buy Now, Pay Later (BNPL) for a particular purchase, suggesting there is appetite for more intelligent, integrated payment tools.
"Marqeta's State of Payment Report signals a move beyond simply choosing a payment method or processing a transaction," said Marcin Glogowski, SVP, Managing Director for Europe and UK CEO, Marqeta. "Consumers are thinking strategically about their payment methods, seeking more convenience and choice and requiring payment providers to offer the options that deliver the most value in real-time based on their specific needs."
The adoption of BNPL has been notable in the UK. According to the survey, 54% of UK consumers have used BNPL, compared to 38% in the US sample. Usage patterns are also shifting, with 16% of UK BNPL users applying it to grocery shopping, and 14% using it for food delivery. Marqeta's platform data support this trend, showing a 9% year-on-year decrease in average order value in the first five months of 2024, indicating a move towards using BNPL for smaller, everyday purchases rather than mainly for high-value items.
SMBs face funding pressures
On the business side, the report finds that UK SMBs are seeking payment solutions that can assist with strategic growth and improved cash flow. Access to finance remains a central issue. Despite generating GBP £2.8 trillion in revenue, UK SMBs collectively hold only GBP £62.1 billion in business loans, a figure that is disproportionate to their economic contribution.
The research shows that 42% of UK SMB owners use personal cards for business expenses, motivated by the larger credit limits and more attractive rewards available on personal cards compared with traditional business credit options. This highlights ongoing limitations in access to suitable business finance.
"UK SMBs need smarter, more flexible payment solutions that not only support their day-to-day operations but also actively fuel their long-term growth," continues Glogowski. "As SMBs raise their expectations for financial tools, payment providers that can deliver real-time and modern solutions that reward businesses will be best positioned to capture this growing demand."
Funding and cash flow management are only part of the picture. The research shows that 52% of SMB respondents see payments as a strategic lever for streamlining expenses, boosting operational efficiency, and freeing up working capital. There is a willingness to embrace new technologies and tools provided they offer tangible benefits, with 90% of SMBs prepared to invest in solutions with higher upfront costs if these generate longer-term savings and improvements in efficiency.
Changing payment landscape
The report identifies ongoing changes in payment expectations, with consumers and businesses showing a preference for tools that offer real-time support, integrated rewards, and a personalised approach based on behavioural data. In line with these trends, Marqeta's survey also explores the growth of social commerce, developments in loyalty programmes, and the impact of digital assets on finance, reflecting a broader shift towards digital-first financial management across the UK.
The survey was conducted in April 2025 and comprised responses from both UK and US participants, providing a comprehensive overview of changing payment priorities and the challenges facing providers and users alike.
