The UK E-commerce & Payment Trends Report: From Customer Acquisition to Lifetime Value

Preface

The UK remains one of the world’s most mature e-commerce markets, characterised by deep digital penetration and a highly developed retail ecosystem. As the market transitions from rapid expansion to operational refinement, the focus is shifting toward customer lifetime value, repeat engagement, and sustainable profitability. Younger consumers are driving this evolution, increasingly prioritising ethical or environmentally responsible brands. At the same time, rising fraud and dispute pressures are testing the resilience of online retail operations, accelerating the adoption of advanced risk control and compliance systems. Digital payments continue to evolve, with wallets gaining prominence among younger users, underscoring a market where security, trust, and seamless payment integration define the next phase of growth.

Key Insights

• The UK’s GDP reached $3.64 trillion in 2024, ranking sixth globally. E-commerce revenue totalled $127.6 billion with 3 million users. The e-commerce penetration rate stood at 81.5%, the third-highest worldwide after the US and Denmark.
• The UK’s per capita e-commerce spending reached $391 in 2024, underscoring strong market depth despite slowing overall growth. The sector is shifting from rapid expansion to refined operations focused on Customer Lifetime Value (CLTV), repeat purchases and sustainable profitability.
• In 2024, more than half of UK consumers (50.8%) “always” or “frequently” shopped online for non-food purchases, rising to 5% among 25–34-year-olds. Furthermore, younger consumers show greater willingness to pay a premium for brands that reflect their values, with nearly 20% of 18–34s prepared to pay a moderate premium for environmentally friendly or ethical products.
• Return fraud has emerged as a major threat, with a small group of returners driving most losses as tactics evolve. Merchants should apply AI-driven risk assessment and smart, tiered return strategies to balance quick refunds for low-risk customers with tighter controls on high-risk behaviours.
• Dispute pressures and compliance risks are increasing due to first-party fraud and tighter Visa Acquirer Monitoring Program (VAMP) regulations. Acquirers must evolve from transaction processors into risk management partners, helping merchants detect risks, reduce disputes and safeguard operations through more transparent collaboration.
• Digital wallet penetration rose to 47% between 2017 and 2022, with usage exceeding 70% among under-34s. Apple Pay’s closed ecosystem – reinforced by restricted NFC access and default settings – strengthens its dominance. Antom supports all major wallets, including Apple Pay, covering over 90% of digital wallet transactions.

The UK in focus: demographics, economic resilience and e-commerce maturity

Market overview

In 2024, the UK had a population of 69.23 million with a balanced gender ratio. Around 63% were of working age (15–64). The official language is English.

The UK’s GDP reached $3.64 trillion in 2024, making it the sixth-largest economy globally, with a per capita GDP of $52,637. In recent years, the country’s e-commerce market has enjoyed sustained growth: its e-commerce user base stood at 50.3 million in 2024 and is projected to grow to 62.7 million by 2029. Statista forecasts a compound annual growth rate (CAGR) of 7.01% for the sector between 2025 and 2029.

In 2024, debit card usage reached 95%, while credit card penetration stood at 62%, as shown in the figures below.

Economic overview

As a mature market economy, the UK is characterised by a stable working-age population and a service-led industrial structure. In 2024, 63% of the population was of working age (15–64), forming the core consumer base. This proportion has remained steady over the past decade. The largest cohorts were those aged 30–39 and 50–59, while the 65+ population exceeded 18% and is set to rise further, highlighting an accelerating ageing trend.

The service sector accounted for 72.79% of GDP in 2024, followed by industry, creating favourable conditions for the continued growth of the digital economy and e-commerce. The UK’s unemployment rate is forecast at 4.5% in 2025, slightly higher than in other major economies but still reflecting a resilient labour market.

In 2024, the UK’s import value totalled $816 billion, led by machinery and nuclear reactor equipment. In 2024, China was the UK’s largest source of imports, accounting for $98.5 billion (13%) of the total.

This overview sums up the UK's market characteristics. Next, let's explore UK consumer behaviours in detail.