The UK is moving forward in the connected economy

With widespread access to high-speed broadband and advanced mobile networks, the UK has a population deeply engaged with the digital world. From video streaming to online banking, followed closely by mobile gaming, messaging and social media, the UK thrives in a connected landscape.

The UK ranks sixth out of 11 countries surveyed, including European neighbors Italy, Spain, France, Germany and the Netherlands, as a result of its digital performance in PYMNTS Intelligence’s “How the World is Going Digital” report.

The report sheds important light on the digital habits of 817 million consumers in these countries. It paints a fascinating picture of digital engagement by analyzing consumer behavior in 11 key areas such as banking, shopping, communication and entertainment.

As the report shows, everyone in the UK has access to high-speed internet (95.9% in 2022) and advanced mobile networks (everyone with access to 4G and 68% in 2022 to 5G). Smartphone ownership is almost universal among adults, while the majority (95.5%) of UK adults use debit cards, and credit card use was 62.1%.

More than half of UK residents engage in video streaming, mobile banking, social media (passively), messaging, mobile gaming and music streaming at least weekly.

Mirroring the weekly engagement data, video streaming (16.6 days) leads the way for the highest average active days per month. Idle social media (15.3 days), messaging (13.6 days), mobile banking (13.6 days), and mobile gaming (12.9 days) round out the top five monthly activities. The data underscores the diverse ways in which UK residents integrate digital tools into their daily lives for entertainment and practical needs such as work and finance.

Gen Z leads the way with the most digital engagement (427 active days), followed by Millennials (358 days), Gen X (247 days) and Baby Boomers (146 days). High income earners exhibit more digital activity (295 days) compared to middle income earners (275 days) and low income earners (252 days).

40% of UK consumers qualify as “digital enthusiasts”, surpassing global peers such as the UK (36%) and Mexico (33%). This translates into a strong preference for digitally enhanced shopping experiences. Despite consumer enthusiasm, according to PYMNTS research, there is a disconnect between their digital shopping expectations and what retailers are offering.

A study by PYMNTS Intelligence, in conjunction with Visa Acceptance Solutions, revealed a significant gap in the UK retail landscape. While 92% of online shoppers report being satisfied, 27% of merchants lack features like flexible payment options and loyalty rewards. Additionally, existing features may be difficult for customers to navigate. This disconnect presents a great opportunity for UK retailers to bridge the gap and better engage a growing base of digital-first customers.

Despite job growth in the digital sector facing stagnation (only 0.3% last year, the slowest since 2012), the incoming Labor government recognizes the importance of a thriving digital economy. Newly appointed Secretary for Science, Innovation and Technology, Peter Kyle, is committed to unlocking the UK’s full digital potential. These include initiatives such as promoting open banking and exploring innovative financial technologies such as central bank digital currencies.

The UK has a solid foundation for digital growth with widespread access to high-speed internet and advanced mobile networks. However, to capitalize on this advantage, retailers must implement features such as flexible payment options and user-friendly loyalty programs. At that point, UK retailers will be able to position themselves in the ever-evolving digital landscape.