Fintech News

The Size of UK Fintech Market by Transaction Value

This year, the size of UK fintech market by transaction value is US$168,522m. According to Statista, transaction value will show an annual growth rate of 20.4 percent resulting in US$353,667m in 2020. “Digital Payments” is the largest market segment, with a transaction value of US$151,682m.

While determining the size of fintech market by transaction value, Statista takes into account digital financial services, digital payments, marketplace lending, Robo-advisors, online crowdfunding and venture financial.  The online research firm does not consider insurance related services, lead-generation business models/meta-search engines, B2B payments, API management, credit scoring, and blockchain technology.

The main segments of the fintech market are digital payments, business finance and personal finance.

Digital Payments

Digital payments include cross-border peer-to-peer payments and digital commerce transactions.  Globally, digital payments volume continues to increase with annual growth rate estimated to reach 10 percent gr0wth of $426.3 billion transactions, according to Capgemini and BNP Paribas’s report. In the UK, the number of digital payments users is predicted to reach 53.4m by 2020.

Statista’s Digital Market Outlook presents a graphical projection of the average digital payments transaction value for every user in the UK from 2014-2020. Transactional value per user of online B2C commerce is expected to grow from 3,030 U.S dollars in 2016 to about 3,771 U.S dollars in 2020. Transactional values of online P2P transfer and mobile wallet POS payments are expected to reach 779 U.S dollars and 3,449 dollars respectively in 2020. 

UK fintech digital payment

Business Finance

Business finance comprises Alternative financing for SMEs, Marketplace lending from institutional or private investors and equity-based crowdfunding. According to Statista, the size of the “Business Finance” by transaction value is US$9,491m, in the UK. Total transaction value is predicted to show an annual growth rate of 40.2 percent resulting in US$36,695m in 2020.

Statista’s Digital Market Outlook provides a graphical projecton of the average business finance transaction value for every SME in the UK from 2014 to 2020. Transactional value of invoice factoring platforms per SME is expected to grow from about 875 U.S dollars in 2016 to about 2,507 U.S dollars in 2020. The transaction value of crowdfunding and business lending platforms per SME is expected to reach 614 U.S dollars and 14,000 U.S. dollars respectively in 2020. 

UK fintech business finance

Personal Finance

Personal finance includes P2P lending platforms and Robo-advisors. According to Statista, the size of “Personal Finance” by transaction value is US$7,348m, in the UK. Total transaction value is predicted to show an annual growth rate of 64.6 percent resulting in US$53,922m in 2020. See the graph below.

Statista’s Digital Market Outlook offers a graphical representation of the average consumer finance transaction value for every user in the UK from 2014 to 2020. Transactional value of Robo-advisors per user is expected to reach 28.000 U.S. dollars in 2020. For more information about the size of the Personal Finance” by transaction value, see the table below.

UK fintech Consumer finance

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