UK e-commerce payment trends: SME retailer guide

The UK e-commerce landscape is shifting rapidly - and is showing no signs of slowing down. Your customers are changing how they shop and pay, and whilst it might feel difficult to keep up, these trends actually present some brilliant opportunities for smaller online retailers who are ready to adapt.

Small and medium enterprises are facing a challenging but opportunity-rich e-commerce environment as shifting consumer behaviours create new pathways to growth.

Consumers are increasingly seeking value, authenticity, and personalised service – qualities that smaller businesses can deliver more effectively than corporate giants. Smart SMEs are capitalising on this moment by emphasising their local roots, offering competitive pricing through lean operations, and building stronger customer relationships through superior service.

The current economic climate, though challenging, presents a unique window for UK small businesses to capture market share from established players by meeting customers exactly where they are: looking for quality products at fair prices from businesses they can trust.

If you're not thinking mobile-first, you're missing out on where your customers actually are. Mobile phones account for 70% of online orders, in the UK, and mobile commerce represents 55% of all e-commerce sales. Put simply, mobile isn't just important – it's absolutely essential.

The demographics are fascinating too: 75% of female shoppers prefer mobile devices for purchases compared to 63% of men, and the 25-34 age group dominates mobile shopping. If these are your target customers, you know exactly where to focus your efforts.

The numbers are impressive as well. UK consumers are expected to spend over £100 billion,through mobile commerce by the end of 2025, with the average mobile transaction value hitting £120.

Digital wallets are having a moment – and it's a big one. Adoption of digital wallets as an online payment method is increasing rapidly, thanks to the security and convenience they offer.

The demographics are fascinating too: 75% of female shoppers prefer mobile devices for purchases compared to 63% of men, and the 25-34 age group dominates mobile shopping. If these are your target customers, you know exactly where to focus your efforts.

Apple Pay is leading the charge with 70% of UK consumers using it for in-store payments and 40% for online shopping. Google Pay and PayPal are also popular choices, and customers love them because they're quick, secure, and hassle-free.

Here's what digital wallets mean for your business:

Buy Now, Pay Later (BNPL) has gone from being a nice-to-have to something customers actively expect. Global BNPL payments are expected to surpass $560 billion by the end of 2025, and UK shoppers are embracing the flexibility it offers.

The people driving this trend are exactly who you'd expect: tech-savvy millennials and Gen Z shoppers who value flexibility and convenience.

Adding BNPL to your checkout can help you:

Here's where things get really interesting. AI agents are expected to handle up to 20% of all e-commerce tasks within the next year, and these aren't just fancy chatbots – they're smart systems that can browse, compare, and even complete purchases for your customers.

The big players are already jumping on this:

For smaller retailers, AI agents can be brilliant for:

What's really exciting is that customers are moving away from traditional search engines and starting to use AI assistants to find and buy products. This means you'll want to think about how your products show up in these AI-powered searches.

Voice commerce lets customers shop using voice commands through smart speakers, phones, or voice assistants like Alexa and Google Assistant. Instead of typing or clicking, they simply say what they want to buy, and the AI handles the rest.

Voice shopping is picking up steam, with 22% of consumers now making purchases through voice assistants on their phones.

To get ready for voice commerce, you might want to:

Here's something that might surprise you: customers are starting their Christmas shopping nearly two months before December. With some shoppers starting even earlier, being prepared ahead of time is crucial for success.

What this means for your business is that Black Friday isn't just one day anymore – it's become a whole season of extended promotions and deals. The checkout experience has become more important than ever as customers become increasingly selective about where they spend their money. With people hunting for deals more than before, having a smooth, fast payment process can be the difference between completing a sale and losing a customer to a competitor.

Let's be honest – payment fraud costs UK businesses millions each year, so getting your security right isn't just nice to have, it's essential for protecting your business and keeping customers happy.

The good news is that security technology is getting better all the time:

Getting these security measures right isn't just about ticking compliance boxes – it's about building trust with your customers so they feel confident buying from you.

Your customers want everything to work together seamlessly, and expect consistent shopping experiences across all channels. This means your payment systems need to work smoothly whether someone's shopping on your website, mobile app, or in your physical store.

Here's what customers expect:

Instant payments are becoming more popular, with 73% of consumers already using them. The UK is launching its New Payments Architecture (NPA), which will upgrade and eventually replace the existing Faster Payments system.

This means better support for instant payments that happen immediately, scheduled payments for the future, regular standing orders, and improved technical standards that work internationally.

For your business, instant payments can really help improve your cash flow since money arrives faster, keep customers happier because they appreciate quick transactions, reduce payment delays and complications, and make your bookkeeping and reconciliation much easier to manage.

The rules around payments are evolving, and whilst it might not be the most exciting topic, it's worth keeping an eye on these changes:

All these trends create some brilliant opportunities, but we know it can feel overwhelming to figure out where to start. Here's how to think about it:

Things to focus on right now:

Worth planning for this year:

Keep an eye out for the future:

2025 is shaping up to be an exciting year for UK e-commerce, and whilst the landscape is changing rapidly, that creates opportunities for smart retailers who are ready to adapt. The key is understanding that your customers' expectations are evolving – they want mobile-first experiences, flexible payment options, and everything to work seamlessly together.

The businesses that will thrive are those that focus on making payments as easy and secure as possible for their customers. Whether that's through digital wallets, Buy Now, Pay Later options, or AI-powered assistance, the common thread is removing friction and building trust.

You don't need to implement every trend at once. Start with what matters most to your customers, build from there, and stay flexible as new opportunities emerge. The retailers who embrace these changes while keeping their customers' needs at the heart of everything they do will be the ones who succeed in this exciting new landscape.