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Faster Payments and Mobile Banking continue stellar growth

Faster Payments and mobile banking remain popular in the UK in 2021, with 86% of all UK adults using at least one form of remote banking during 2021 (online banking via a computer, mobile banking via an app on a smartphone or tablet, or calling their bank via a telephone banking service).

The majority of people in all age groups used remote banking in 2021, ranging from 72% of those aged 65 and over to 92% of people aged 35-44.

The number of people using mobile banking in particular continued to grow, reaching 57% of all UK adults.

There was a slight fall in the proportion of UK adults using online banking (via a computer), as increasing numbers moved across to using only mobile banking.

Despite this, almost two thirds (65%) of UK adults used online banking during 2021.

Related to the ongoing popularity of remote banking services in the UK, the number of remote banking payments processed via the Faster Payments Service (or cleared in-house by banks) during 2021 continued to grow strongly in 2021.

The number of payments increased by 23% compared with the previous year, to reach 3.6 billion payments.

Use of remote banking by businesses also contributed to the strong growth in the volume of Faster Payments.

In 2021, 39% of all payments made by businesses were made using Faster Payments and other remote banking, overtaking Bacs Direct Credit for the first time as the most used payment method among businesses.

Use of fast payments and other remote banking is expected to see strong growth over the next decade as both consumers and businesses increase their use of online and mobile banking.

By 2031 remote banking payments processed via the Faster Payments Service or cleared in-house are forecast to rise to 5.7 billion.

Another potential driver for Faster Payments and remote banking over the next few years may come from the continued development of Open Banking products and services.

Open Banking raises the potential for services that would allow consumers to pay for online shopping (or indeed in-store shopping) using account-to-account payments rather than paying using a card or PayPal (or similar service).

As such fast payments could become an alternative to card payments (and/or PayPal payments).

Having said this, these services have yet to be communicated or marketed to consumers on a wide scale, and it is not clear what the consumer appetite might be to change their established payments behaviour, particularly where the benefits to consumers (rather than businesses) are not obvious.


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