News & Views - Savantor

UK Payment Predictions

Friday, 09 October 2015
In the past week, Payments UK has released the results of research into predicting future payment volumes. Key predictions include the increase of card payment volumes by 66% from 2014 to 2024; that online/phone (Faster Payments) volumes will more than double; and that consumer cash payments will reach 12.6 billion per annum by 2024. Overall, it is forecast that an all-time record of 44 billion payments will be made in 2024, up 3.4 billion over 10 years, equating to 120 million payments per day. The research behind these predictions attributes the increase to rises in card, internet and mobile banking payments, with the most significant increase in debit cards at the expense of cash as consumers opt increasingly for debit card contactless payments. The growth in debit card volumes will also come from increasing e-commerce usage. In 2014 debit card payments represented 26% of consumer payment volumes; by 2024 it is predicted this will rise to 42% of consumer payment volumes, equivalent to an average of 282 debit card payments per person. By 2016 it is forecast that the total volume of all consumer non-cash payments will exceed the volume of cash payments for the first time, although if both consumer and business payment volumes are combined, non-cash payments overtook cash payments in July last year. In 2014, the total volume of debit and credit cards payments combined equated 51% of the volume of non-cash payments, but by 2024 it is predicted they will account for 60% of non-cash transactions, with the volume of debit card sales growing from 9.2 billion in 2014 to 16.0 billion in 2024. Both cheque and cash payments are predicted, unsurprisingly, to decline. In 2014 cheques only accounted for 1.1% of the volume of consumer payments and are forecast to decline to 0.4% by 2024. Cash, which accounted for 53% of consumer payment volumes in 2014, is also set to decline to 33% by 2024. In terms of number of payments, it is forecast there will be 12.6 billion consumer cash payments in 2024, indicating a decline of 30% compared to the 18.1 billion consumer cash payments in 2014. Whilst the predicted trends of the various payment methods and types are probably not surprising and may confirm the views of many involved in the payments industry, nevertheless it is interesting to see actual volumes forecast over such a long period, as predictions are easier to make in the short term but more difficult to hone over a longer period. With the market continuing to evolve and develop at an ever- increasing pace it will be intriguing to see how the forecast volumes from this research compare to the actuals by 2024.
Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Complex Cards Business Transformation

"This was a major business transformation that required us to build an excellent team made up of internal bank specialists, supported by external card business, technical and operations expertise. Savantor provided specialists from the local market and with international experience to fill a variety of important roles. The Savantor resourcing team are professional, reliable and good people to work with."

Ricardo Gomez, Director - Operations & Technology - WiZink Bank - Spain

Business and Platform Strategy

"Savantor successfully advised Rabobank during preparing of the platform migration for cards. Savantor demonstrated thorough knowledge of business processes and market players combined with a practical approach."

Evert Fekkes, Business Information Manager - Rabobank - Nederland

EMV Migration Planning

"It was a strategic imperative for the bank to be EMV compliant for our payment cards and the experience that Savantor brought to the company has proved to be invaluable."

Eddie Sweeney, Chief Technology Officer - AIB Bank - Ireland

Payment Specialists

"Working close with Savantor's professionals over the years in the payment arena. I appreciate the skills and knowledge these guys have and will surely engage with them when opportunities arise. The current engagement with Savantor is full to satisfaction and beyond."

Idsert Walta, Head of Banking Categories - Nordea - Scandinavia

Payments Platform Strategy and Sourcing

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with our team and actively contribute. Their experts quickly forged strong working relationships and delivered to our brief. We enjoyed working with them to develop our future platform strategy."

Evert R Fekkes, SVP - Payment & Savings Services - Rabobank Nederland

Interchange Review

"Savantor did a superb job in confirming what we believed was an area of weakness. The detail we now have will enable us to agree internally what we need to do to improve structure, control and income. Nationwide management were very impressed with the quality of the Savantor team."

Adam Slater, Senior Manager - Banking - Nationwide Building Society - UK

New Fuel Card Guidelines

"Savantor successfully assisted Clear2Pay by providing specialist EMV expertise."

Marie Costers, General Manager - Clear2Pay Open Test Solutions

Expert Witness

"After searching extensively for the required industry expert in a complex litigation, Savantor was identified to have the necessary industry knowledge and expertise on a range of complex issues. Savantor provided clear advice and was able to quickly hone in on the key issues, but most importantly, generating pragmatic winnable answers."

Gavin Ingram, General Counsel & VP Strategic Planning - Global Blue - Asia Pacific

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.