With the advance of technology, many different and convenient methods of payment are now available besides cash. In this article, we will discuss the most commonly used methods of payment in the UK.
Cash payments are still widely used in the UK, but Card and Digital payments have grown more popular in recent years.
Credit Cards
They are a popular method of payment, especially for ex-pats living in the UK as credit cards are accepted worldwide. But all companies in the UK do not accept this form of payment as the money transfer does not take place immediately from the bank holders’ account.
Debit card
Payment through debit cards is the most popular method of payment in the UK. The amount charged from a debit card is instantly deducted from the owner’s bank account, unlike credit cards or cheques which take a long time to process.
Debit cards are used for grocery shopping and at retail stores. Debit card convenience and wide acceptance by companies have made them very popular. And in recent years Debit cards now offer even more security as they have been converted to Chip and PIN.
Widely accepted Debit cards in the UK are:
- Maestro
- Visa Debit
- Debit Mastercard
- Visa Electron
Cheques
Cheques are still a popular method of payment in the UK, especially among the older generation. Even though it takes time to process cheques and they are prone to frauds.
Standing orders/ Direct debits
Rent and utility bills in the UK are usually paid through Standing Orders or Direct Debits. How do they work? Both these methods allow the bank to transfer money from the concerned bank account to the recipients’ account at certain intervals or when certain conditions are met.
For standing orders, the bank is informed to pay a certain amount to a specific company or individual such as the landlord, etc. at regular intervals. This system stays in place until the account holder informs the bank otherwise.
Direct debits give a third party such as the credit company permission to directly withdraw money from their bank account.
Direct debits are more popular than standing orders as they are faster and cheaper compared to Standing orders.
Popular Digital Payments Platforms
- PayPal
This app allows easy payment with strong security and thus has been widely accepted by the British.
- Google Wallet
It allows people to send and receive money securely with no extra charge.
Popular mobile payment platforms in the UK are:
- Apple Pay
- Google Pay
- Amazon Pay
In the UK Takeaways, hardware shops, car dealerships, and even pubs accept mobile payment. Mobile payments can be made for online purchases as well as in-store purchases. This is why mobile payments have grown exponentially in popularity in the UK.
