Executive summary
How UK consumers are balancing digital adoption, payment choice and security in 2026
The UK’s payment habits are becoming increasingly digital, yet consumers continue to prioritise trust, security and flexibility.
The Payments Association’s Consumer Behaviour Survey explores how UK consumers pay, shop and engage with payment technologies in 2026. Drawing on responses from more than 2,100 UK adults, the research examines payment preferences across everyday spending, online commerce, travel, fraud experiences and attitudes towards emerging payment methods.
The findings reveal a payments landscape that is increasingly digital, with contactless cards and mobile wallets now playing a central role in everyday transactions. However, consumers continue to value access to both cash and cashless payment options, while security remains a key factor influencing payment behaviour, trust and the adoption of new payment methods.
At a glance
These headline findings provide a snapshot of how UK consumers are paying in 2026, highlighting the growing role of digital payments, the continued importance of payment choice, and the influence of security on consumer behaviour.
26%
Most-used in-person payment method: contactless debit card
26%
Most-used in-person payment method: mobile wallet
70%
Say it is important that both cash and cashless payment options remain available
69%
Make online payments at least weekly
55%
Prioritise security when making high-value purchases
20%
Experienced at least one type of fraud in the past 12 months.
Industry implications
The findings reveal a payments landscape that is becoming increasingly digital, but not necessarily simpler. Consumers are embracing new payment technologies and digital channels, yet continue to place significant value on choice, security and trust. Rather than converging around a single payment method, behaviour is becoming more fragmented, with preferences varying across transaction types, demographics and individual circumstances.
For businesses operating across the payments ecosystem, this presents both opportunities and challenges. Success will depend not only on supporting innovation, but also on meeting evolving consumer expectations around accessibility, protection and flexibility. The following implications highlight what the survey findings may mean for key stakeholders, including merchants, payment service providers, banks, fintechs and policymakers.
Merchants
Consumers want choice, not standardisation
While digital payments continue to dominate everyday spending, 70% of consumers still believe both cash and cashless options should remain available. Merchants should be cautious about removing payment options in pursuit of operational efficiency alone. Maintaining flexibility may support customer satisfaction, accessibility and conversion across diverse consumer groups.
PSPs and Acquirers
Security is becoming a competitive differentiator
Consumers consistently rank security as the most important factor when considering new payment methods. PSPs that can demonstrate fraud prevention, authentication and buyer protection capabilities may be better positioned to drive merchant adoption and consumer trust than those competing solely on convenience.
Banks and Card Issuers
Trust remains a core asset
The continued preference for established payment methods in higher-value transactions highlights the importance of trust, security and dispute resolution. Financial institutions remain well-positioned to support consumer confidence, particularly as new payment methods compete for adoption.
Digital Wallet Providers
Mainstream adoption has arrived
Mobile wallets now match contactless debit cards as the UK’s most-used payment method for everyday purchases. The challenge for wallet providers is no longer driving awareness, but deepening engagement and creating differentiated value through loyalty, identity, security and financial management features.
Fintechs and Emerging Payment Providers
Innovation alone is not enough
Consumers are open to new payment methods, but adoption depends heavily on clear consumer benefits. Security, trust and buyer protection appear to matter more than novelty. Providers should focus on solving real consumer problems rather than introducing innovation for its own sake.
Policymakers and Regulators
Inclusion remains an important consideration
The continued importance attached to maintaining both cash and cashless payment options suggests that consumers view payment choice as part of a resilient and inclusive payments ecosystem. Policymakers will need to balance support for innovation with preserving access for consumers who continue to rely on traditional payment methods.