Laura WilesThe PSR has published its 2024-25 Consumer Research report, which aimed to understand the influences behind consumer payment choices, how consumers behaved in different circumstances, and what they required of their payments systems.
Key findings included:
- Payment behaviours are guided by context and rooted in habit;
- Consumers are largely satisfied with payment systems and feel that payments are working well:
- 95% of consumers agree that payment systems in the UK are working well;
- 92% say that they can make and receive payments in a timely manner; and
- 87% feel their money is secure when they make payments in the UK;
- However, 41% worried about the possibility of fraud (a particular concern for financially constrained consumers) and 39% experiencing limited choice in payments;
- Consumers are confident about prioritising different needs for different payments:
- Ease of use is consumers� top priority for lower value payment types, closely followed by speed;
- Protection and security are the top priorities for higher value payments, with 42% of consumers preferring credit cards for higher value items; and
- For recurring payments, reliability was key: 74% of consumers preferred to use direct debits or standing orders for their utility bills, and about two-thirds for rent or mortgages and entertainment subscriptions;
- Contactless card payments remain the most frequently used payment type, with younger consumers significantly more likely to use mobile wallets regularly. A third of customers said they used contactless payments more than they did last year due to convenience, and they trust them more than they did previously; and
- The majority of consumers felt positive and reassured when informed about the PSR�s recently introduced APP fraud reimbursement policy.