United Kingdom
The United Kingdom (UK) is the 5th largest economy in the world and the 2nd in Europe. The country ranks as the 14th largest exporter of goods and second largest importer of services worldwide, and as the 7th largest importer of goods and 6th largest importer of services. On 31 January 2020, the UK left the European Union, after 47 years of membership, and a Trade and Cooperation Agreement was subsequently negotiated between the parties, applicable from 1 January 2021. Implementing the new trade relationship with the EU and combating the COVID-19 pandemic have been huge challenges for the country. After a severe contraction of gross domestic product in 2020 (-9.7%), the UK recorded a GDP expansion of 7.4% in 2021, driven by the performance of economic activity from the second quarter onwards as a result of the fiscal and monetary policy measures implemented and an easing of restrictions. The Russia-Ukraine conflict, with a strong impact on energy price increases, political instability within the British government, and the persistence of some uncertainty associated with the implementation of the Northern Ireland protocol may condition the evolution of the respective economic activity, forecasting a 3.6% growth in 2022, according to EIU and OECD data. No. of people: 68.2 million (estimate 2021) Imports and exports Imports from the UK registered a value of USD 690 billion in 2021 (USD 634 billion in 2020). The five main import product groups were Machinery and Appliances (20.5% of the total), Vehicles and Other Transport Material (10.4% of the total), Mineral Fuels (10.2% of the total), Chemicals (10.0% of the total) and Agricultural Products (4.9% of the total). UK exports registered a value of USD 468 billion in 2021 (USD 396 billion in 2020). The five main export product groups were Machinery and Appliances (20.4% of the total), Chemicals (13.6% of the total), Vehicles and Other Transport Material (12.0% of the total), Mineral Fuels (7.5% of the total) and Common Metals (5.5% of the total). UK recorded a deficit of USD 222 billion in 2021, an increase of USD 23 billion compared to 2017 and a decrease of USD 17 billion compared to 2020. The import to export coverage ratio stood at 67.9%, 5.5pp higher than in 2020. Source: Comtrade (06/2022)
Top banks
The banking sector in the United Kingdom is regarded as the largest in Europe and the fourth largest in the world. Banking in the UK is highly developed, with new sectors driven by cutting-edge technology and innovation. It is also considered the largest financial center globally for cross-border lending. Banks in the United Kingdom can be demonstrated by the fact that nearly the entire population of the UK has a debit card, and about two-thirds of the population is said to have a credit card. There are different categories of banks in the UK. Each type of bank caters to varying needs, from personal to business. Listed below are the four major categories of banks in the UK: Central Bank – In the UK, the Central Bank is the Bank of England or BoE. The Bank of England is the UK’s Central Bank and happens to be the world’s eighth oldest bank. The Bank of England is tasked with setting up and maintaining the country’s monetary policyand financial stability. High Street Banks – High street banks are like retail banks with multiple branch locations. These banks provide retail services; they mostly serve the general public. Instead of targeting a specific market or type of customer, they service a wide range of customers. A major characteristic of high street banks is that they are widespread and located in any commercial sector of towns and cities. Business Banking – Business banking services are those which High Street Banks offer. These services are provided in addition to what an ordinary account can offer. Hence, these are provided as additional services and for a certain fee. Investment Banking – Financial institutions offer investment banking services to customers, from individual corporations to governments. In addition, these institutes provide these investment banking services to invest in other companies and bond stocks. Banks in the United Kingdom services are provided on behalf of the high street banks, investment trusts and pension funds. The United Kingdom is home to several of the most important banks in Europe. Two UK based banks - HSBC and Lloyds Banking Group – are not only the largest banks in the country, but also a market capitalization above 30 billion U.S. dollars, while the largest - HSBC - is the largest bank in Europe with a market capitalization of over 124 billion U.S. dollars. In addition, UK based banks Lloyds and NatWest rank as the 10th and 14th largest in Europe. Other large and well-known banks in the United Kingdom are Barclays and Standard Chartered, even though they do not rank among the top players in Europe. In terms of online banking, there are several online banks operating in the United Kingdom, but the most popular two are Monzo Bank and Starling Bank. Monzo was founded in 2015 and is a digital- only bank with no physical branches. Their customer numbers are growing rapidly, and as of 2022, the bank had more than five million customers, a figure that has more than doubled in three years. The other major digital-only bank in the country, Starling Bank, was founded in 2014 and has also been a huge success. The bank has had high ratios of new gained customers during the last few years, despite the downward trend in 2021 and 2022. Though the bank operates globally, most of their customers are from the United Kingdom rank among the top 10 banks in Europe in terms of market capitalization. Both of these banks have. Source: Statista – Largest banques in the UK – statistics & facts
HSBC
HSBC was born from one simple idea – a local bank serving international needs. In March 1865, HSBC opened its doors for business in Hong Kong, helping to finance trade between Europe and Asia. Our purpose – Opening up a world of opportunity – explains why we exist. We’re here to use our unique expertise, capabilities, breadth and perspectives to open up new kinds of opportunity for our customers. We’re bringing together the people, ideas and capital that nurture progress and growth, helping to create a better world – for our customers, our people, our investors, our communities and the planet we all share.
Monzo
Monzo is mobile banking that puts you in control of your money. With our intuitive spending and saving account and no overdraft fees you can optimize your budget, manage payments and subscriptions, and save money. Sutton Bank helps us hold our users’ deposits and protect your money with Federal Deposit Insurance Corporation (FDIC) insurance.
Lloyds Banking
Lloyds Banking Group is a leading UK-based financial services group. We provide a wide range of banking and financial services, focused primarily on retail and commercial customers.
Santander Bank
As a global leader in financial services, we’re transforming businesses and empowering communities with product, services, and contributions, but more importantly, we’re enriching the lives of our clients. See the work we’ve done and how we’re building a better world for everyone around us.
Starling Bank
Starling Bank is a British bank, occasionally referred to as a digital challenger bank or neobank, providing current and business bank accounts in the United Kingdom. Starling Bank is a licensed and regulated bank, founded by former Allied Irish Banks COO, Anne Boden, in January 2014.
Metro Bank
It offers a full range of banking and other financial products and services, including corporate, commercial and consumer banking, as well as credit card, remittances, leasing, investment banking and trust banking.
First Direct
Current accounts, savings, credit cards, mortgages, personal loans and insurance. We offer the same things most banks do. We just offer them in a different way. A way that works best for you. And we’re constantly reviewing our products to make sure they’re flexible enough to support our customers’ lives.
Barclays
Our vision is to be the UK-centred leader in global finance. We are a diversified bank with comprehensive UK consumer, corporate and wealth and private banking franchises, a leading investment bank and a strong, specialist US consumer bank. Through these five divisions, we are working together for a better financial future for our customers, clients and communities.
NatWest
NatWest Group is a UK-focused banking organisation, serving over 19 million customers, with business operations stretching across retail, commercial and private banking markets.
Bank of Scotland
At Bank of Scotland, we’ve proudly been by the side of Scottish families, communities and businesses since our foundation in 1695. As Scotland’s oldest bank our expertise has helped customers plan their finances for over 300 years. We are the Bank of Scotland, and we are by your side.
Top payment methods
Open banking allows shoppers to directly pay from their bank through an account-to-account payment that makes for a user- friendly, secure and cost-effective payment experience.
A Direct Debit is an instruction from a customer to their bank, authorizing a business to collect an agreed amount from their account. BACS is the simplest way for companies to get paid for regular or occasional payments from their UK customers, both business and consumer.
BACS
When making a BACS Direct Debit payment, the shopper needs to enter their name, bank account number, sort code, and email address. Before they continue to pay, the shopper confirms that the account is in their name and that they agree with the payment. After the payment is received, they are given the option to download a copy of the Direct Debit Instruction (DDI) or 'mandate'. Taking the BACS processing cycle into account, it can take four to six before payment is cleared and settled.
Diners Club
Diners Club, was the world's first independent credit card company, and is synonymous with premium quality travel, leisure, and entertainment. Diners Club is now part of the Discover network, combining to create a network spanning over 185 countries. This card is particularly suited to verticals such as airlines, hotels and other premium hospitality services.
American Express
Accepted in more than 130 countries and with over 100 million cards inuse, American Express (AMEX) is a relevant payment method worldwide. AMEX cardholders spend on average three to four times more than Visaand Mastercard cardholders, making it of particular interest to premium and more sophisticated businesses.
Visa
Visa is the world's largest global card network by transaction value, ubiquitous worldwide. Visa positions itself as "the best way to pay and get paid by everyone".
Paypal
Paypal is one of the market leaders in online payment solutions with more than 400 million active customers worldwide, available in 200 countries and in more than 100 different currencies. As faras online shopping payment is concerned, it is the one of the mostused payment method in France.
Mastercard
As one of the largest card brands in the world, Mastercard dominatesthe co-branded card market in Europe. It is also the leader incountries like Austria, Brazil, Canada, Colombia, Germany, Hungary, Venezuela, and in the Benelux among others.
Clearpay
Clearpay is a popular buy now, pay later service in France, Italy, Spain, and the United Kingdom. With Clearpay, the shopper can pay for the goods in four installments. Before approving the payment, Clearpay performs risk checks on the shopper. If successful, Clearpay takes on the full fraud risk for the payment, and pays you up front.
Discover
Discover Financial Services is an American financial services company that owns and operates Discover Bank, an online bank that offers checking and savings accounts, personal loans, home equity loans, student loans and credit cards. It also owns and operates the Discover and
Pulse networks, and owns Diners Club International. Discover Card is the third largest credit card brand in the United States, when measured by cards in force, with nearly 50 million cardholders and is wide used in the UK.
Concluding remarks
In the United Kingdom, there are various payment methods available for individuals and businesses. These payment methods include:
Cash
Cash is widely accepted in the UK for most transactions, although it is becoming less common for larger purchases. Banknotes in circulation include £5, £10, £20, and £50 notes, while coins include 1p, 2p, 5p, 10p, 20p, 50p, £1, and £2.
Debit Cards
Debit cards are commonly used in the UK for both in-person and online transactions. They are linked to the cardholder's bank account, and payments are deducted directly from the account. Debit cards in the UK often have the Visa Debit or Mastercard Debit logo, enabling them to be used internationally as well.
Credit cards
Credit cards are widely accepted in the UK. They allow cardholders to make purchases on credit and pay the balance off at a later date or in installments. Popular credit card networks in the UK include Visa, Mastercard, American Express, and Discover.
Contactless Payments
Contactless payment methods, such as contactless debit and credit cards, as well as mobile payment services like Apple Pay, Google Pay, and Samsung Pay, are increasingly popular in the UK. They allow for quick and convenient transactions by tapping the card or mobile device on a contactless-enabled payment terminal.
Bank Transfers
Bank transfers, also known as direct bank transfers or electronic funds transfers, are commonly used for larger transactions, bill payments, and online shopping. They involve transferring funds directly from one bank account to another using the account details of the recipient.
Online Payment Services
Online payment services like PayPal are widely used in the UK. These services allow individuals and businesses to send and receive payments securely over the internet using a linked bank account or credit card.
Mobile Banking Apps
Most banks in the UK offer mobile banking apps that allow customers to manage their accounts, make payments, and transfer funds using their smartphones or tablets. These apps often support features like person-to-person payments, bill payments, and account balance inquiries.
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Processing News is an Online Wikipedia of the payment world. We collect and publish information about payment habits in different countries, describing methods that payers use in their daily life.
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