UK Payments Pulse: Security and Trust Drive Payment Choices

WHY THIS MATTERS: The current payments landscape is defined by a distinct paradox: while the pace of technological advancement is at an all-time high, the primary determinant of mass adoption is increasingly conservative. We have moved beyond the “innovate at all costs” phase of fintech into a critical “trust economy.” Consumers and merchants alike are signaling that flashy features—even sophisticated AI-driven agentic commerce—are secondary to the fundamental assurance of safety. The industry is currently facing a bottleneck where economic volatility and heightened fraud awareness are forcing a flight to quality. For organizations, the message is clear: security can no longer be viewed as a back-office compliance hurdle. It must be positioned as the primary value proposition of any digital payment strategy. Without a bedrock of radical transparency and robust consumer protection, the potential for next-generation payment systems will remain largely untapped.

Security has become the defining factor in how UK businesses and consumers choose to pay, according to new research from Visa. 

The study, which surveyed UK merchants and consumers, found that while interest in next-generation payment technologies is growing, long-term adoption will depend on building trust, confidence and understanding. 

Economic pressures are reshaping the payments landscape. Nearly two-thirds (63%) of consumers say cost of living is their top concern, whilst 79% of small and medium-sized businesses report that price rises are holding them back. In this environment, businesses are focused on resilience rather than growth. 

Rob Cameron, UK & Ireland, Group Country Manager at Visa, said: “This research confirms what we’re hearing across the market: trust is the foundation of payment adoption. Consumers and businesses want innovation, but they want to feel safe first. When people feel secure, they engage. Get that foundation right and adoption follows. At Visa, we don’t just observe these trends, we help shape them by building safety into the network. We use advanced technology to monitor network-level trends to help prevent fraud before it happens, and we work with partners across the ecosystem to disrupt scams and protect consumers and businesses. 

“Merchants are curious about what’s next, especially agentic commerce, but interest needs to be matched with understanding. That’s why we’re focused on helping the UK innovate safely, sharing clear guidance, setting strong standards for new AI-enabled payment experiences, and designing in controls so people stay in charge. If consumers can pause, cancel or reverse, and know they’ll be protected if something goes wrong, confidence grows and adoption can follow.” 

Additional findings from the research underline how quickly behaviour is changing, and why trust will remain central as new technologies emerge: 

• Digital payments are now the default: 77% of consumers use debit cards and 67% say they use electronic payments more often than cash 
• Cards are integral to day-to-day commerce: 52% of merchants now generate more than half of their turnover via cards 
• Fraud is widespread: 40% of consumers say they or someone they know has been a victim of fraud or a scam in the past 12 months; 32% of merchants experienced a fraudulent transaction or attempted fraud over the same period. Whilst the scale of the challenge continues to increase, Visa is now tackling between 400 and 500 million cyber attacks monthly on our network globally, and fraud has reduced by 24% on the Visa network over the past three years. 
• AI is already part of everyday business for many SMBs: 64% of merchants are currently using AI and 69% are likely to explore more in the next 2 years 

The research highlights that security is now paramount for both businesses and consumers when making payment decisions: 

• 88% of SMBs say fraud and cybersecurity protection are important when choosing a payment provider 
• 36% of consumers who are using debit and credit cards more frequently cite security as a key reason 
• 45% of small businesses say better payment solutions are actively helping them run and grow 

Interest in emerging payments is high, but merchants are progressing cautiously to navigate trust risks:   

• 60% of merchants are interested in agentic commerce 
• 41% of merchants are implementing AI with prominent use cases in marketing and customer service, but 49% of merchants are concerned with misinformation from AI.

FF NEWS TAKE: This research confirms a long-overdue recalibration within the sector. The focus is shifting from pure disruption to sustainable, secure scale. It moves the needle by forcing vendors to prove the resilience of their AI frameworks before deployment. The next chapter will be defined by “safety-by-design”—specifically how effectively providers can build reversal capabilities into agentic commerce without creating friction. Expect a fierce competitive scramble over who can best market trust as a core product feature.