Sector trends

The European and UK payments sector is experiencing a surge in M&A activity driven by a pursuit of scale, innovation, and the divestment of non-core assets. Major transactions, such as Global Payments' multi-billion dollar acquisition of Worldpay, highlight a landscape where established banks are increasingly migrating toward partnership models. These shifts occur alongside significant changes in consumer behavior, including the near-total dominance of contactless payments in the UK and a strategic re-evaluation of cash usage in Nordic countries.

The payments landscape in H2 2024 and H1 2025 has been defined by massive consolidation efforts, most notably Global Payments' $24.25 billion acquisition of Worldpay from FIS. In a reciprocal move, FIS executed a $13.5 billion acquisition of Global Payments' issuer solutions, illustrating a strategic reshuffling among industry giants. Beyond these mega-deals, the sector is seeing a high volume of activity as market participants seek increased scale and innovation. This trend is further fueled by established banks divesting non-core assets and larger Payment Service Providers (PSPs) streamlining their portfolios following major acquisitions.

Technological adoption continues to reshape the market, with contactless transactions accounting for 94.6% of all eligible in-store card payments in the UK during 2024, up from 93.4% in 2023. In Switzerland, debit cards have officially overtaken cash as the preferred payment method, while one in three Britons now utilize mobile phones for contactless payments monthly. To keep pace, traditional banks are under pressure to transform their legacy payment infrastructures to meet rising customer expectations and defend against competition from digital-first challengers.

Regional developments are also focusing on interoperability and system resilience. The formation of the Wallet Interoperability Council—comprising TerraPay, Airtel, bKash, MPESA, Nequi, and Sama Money—aims to facilitate cross-border transactions across emerging markets like Kenya, Colombia, and Bangladesh. Meanwhile, Nordic and Baltic nations, including Finland, Sweden, Norway, Denmark, and Estonia, are developing offline card payment systems to mitigate the risk of online service outages. Conversely, Sweden is seeing a policy shift as the Central Bank proposes mandatory cash acceptance for essential goods, signaling a cautious retreat from its previous push toward a fully cashless society.