Santander has published a report on the future of payments in the UK that also highlights concerns about fraud.
The survey used data garnered from 3,022 adults (February 2025), 501 SME finance decision-makers, 14 in-depth interviews, and a “London citizens’ jury on crypto and the digital pound.”
Santander’s information states that 70% of consumers are satisfied with the current payments landscape and only 20% want new payment offerings.
As well, the report indicates “crypto skepticism“: 63% of those surveyed say they have no interest in using crypto for payments, and a majority (55%) have never heard of the digital pound. At the same time, 90% are aware of crypto, but few express a good understanding of the technology.
Back tokenisation over retail CBDCs
Santander believes the most effective deployment of blockchain technology in payments is through tokenised commercial bank deposits and bank-issued stablecoins. The bank is obviously concerned about disintermediation and a flight to non-bank deposits.
The UK is currently reviewing both a CBDC (central bank digital currency) and privately issued stablecoins. The concept of a CBDC has diminished recently due to concerns about government abuse and intrusion. Meanwhile, regulated stablecoins as a modern form of payment are on the rise.
“Maturation of the reputation of crypto from being a risky product to one that serves a genuine purpose is growing among younger and more affluent demographics, but has yet to reach the vast majority of consumers.”
Currently in the UK, debit card usage leads the way with 49% of consumers using them every day. Credit cards are used for larger, protected purchases and 25% are using digital wallets most frequently.
A majority (52%) see fraud as the biggest concern, along with loss of funds, when making payments,
Santander states that this means future payments infrastructure must place fraud prevention at its core, including the ability to slow suspicious payments.
Paul Horlock, Chief Payments Officer, Santander UK, interprets the survey as showing consumers have confidence in banks.
“To realise the full potential of the progress that we’ve made, more needs to be done to ensure realisation of the holistic government strategy recognises the vital role payments play in driving growth within the Financial Services Growth & Competitiveness Strategy. At the same time, a more pro-innovation stance from regulators is essential, and public political backing for that stance is vital if the UK is to stay ahead globally. The priorities that we have set out must create a payments ecosystem that drives UK growth, protects consumers, and keeps the country at the forefront of global financial innovation.”
Santander outlines what they would like to see in the new realm of digital payments:
1. Put consumers first – Focus innovation on tackling real challenges such as fraud and protection, not inventing new ways to pay without demand.
2. Make innovation commercially viable – Ensure new payment models are economically sustainable so protections can be maintained.
3. Renew infrastructure smartly – Replace Faster Payments and Bacs with modern, secure systems that retain familiarity for users.
4. Design out fraud – Embed prevention, data-sharing and clear liability into every new system.
5. Back tokenisation over retail CBDCs – Prioritise tokenised commercial bank deposits and regulated stablecoins rather than a consumer digital pound, provided by the central bank.
6. Empower regulators to drive innovate – Encourage a pro-innovation culture supported by visible political backing.
7. Streamline oversight – Use the PSR’s abolition to simplify regulation and clarify the roles of the FCA and Bank of England.
8. Protect cards’ strengths – Keep card payments competitive, transparent and affordable through clear fee oversight.
9. Keep government in the lead – Maintain Treasury coordination of the National Payments Vision and future infrastructure strategy.
10. Build on trust – Leverage the credibility of banks, who remain the most trusted advocates in this space by consumers, and established networks to guide safe, consumer-led innovation.