Comparing payment options in the UK and Hungary

In 2024, most people in the developed world prefer paying by card, or at least often utilise this option. The use of cash is getting further and further into the background while a growing number of retail chains and businesses introduce the option to pay by card. In this article, we are comparing the payment options in the UK and Hungary.

Payment options in the UK

Payment options in the United Kingdom are as diverse as the country and its economy. According to pay.com, the United Kingdom (England, Scotland, Wales, and Northern Ireland) “has the third-largest e-commerce market in the world”, which means that you have uncountable options to get whatever you need from the comfort of your home, using the internet. (If you’re interested in combining pleasure with business, you can also take part in a pay by phone bill casino in the UK!)

Let’s look at the five most preferred payment methods in the UK:

1. Debit and credit cards	2. Cash	3. Contactless payment	4. Digital wallet	5. Direct debit
97% of UK residents have debit card for daily spendings	Percentage of cash payments in 2021: only 15%	Contactless payments were used in 32% of transactions in 2021	Digital wallet consumers use this method at least once/month	90% of UK residents pay bills with direct bank account transfers

As can be seen from the above chart, using debit and credit cards is the most popular payment method across the United Kingdom. Even though cash is the second, its usage is steadily declining. With the rise of digital payment methods, fewer and fewer people keep cash in their wallets and pockets. According to pay.com, the percentage of cash payments declined from 62% in 2006 to just 15% in 2021.

Contactless payments have soared in popularity in the UK recently. While in 2016, only 7% of transactions saw contactless payment as the chosen method, this percentage jumped to 32% in 2021. As for digital wallets, the most popular digital wallets in the UK are Google Pay, Samsung Pay, and Apple Pay. Direct bank transfer is the 5th most popular payment method, with 4.6 billion transactions in 2021.

Payment options in Hungary

Whether you’re going shopping, paying for a service, ordering online or getting food, you’re likely to be offered a number of options to pay. Even though digital payments are not as popular and widely used as in the United Kingdom, most businesses offer numerous digital payment solutions. According to adyen.com, a local currency, the so-called Instant Payment System (AFR), has been launched in Hungary to reduce the amount of cash in circulation and encourage people to pay digitally. Despite this, cash is still the preferred method of in-store payment in Hungary.

Let’s look at the five most preferred non-cash payment methods in Hungary:

1. Mastercard	2. Visa	3. PayPal	4. Google Pay	5. Apple Pay
72% of people use their cards more than once/month	20% of Hungary’s card owners use Visa	Survey: most commonly used fintech platform with 65%	Mobile wallets are becoming more and more popular	Apple products less popular than Android ones

As can be seen, Mastercard is the most popular credit card in Hungary. According to pay.com, more than half of residents use bank-issued cards daily, and 72% of people use their cards more than once per month. Visa is the second most popular credit card in the country, with approximately 20% of card owners using it. Just like Mastercard, Visa cards are also compatible with digital wallets like Apple Pay and Google Pay. As for PayPal, it is commonly used in the country for peer-to-peer money transfers and online shopping.

In conclusion, while the UK and Hungary offer similar payment methods, what still differs is people’s preferences: in Hungary, a larger percentage of customers prefer using cash over digital payment methods.

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