Polar Moment’s Payments Perspective: April 2025

Welcome to the April edition of Polar Moment’s Payments Perspective. This month brought a range of notable developments in the payments landscape — from contactless spending trends to the regulatory scrutiny of card networks. Here’s what stood out:

Contactless Payments Dominated UK Spending in 2024

According to Barclays, 94.6% of all eligible in-store card transactions in the UK were contactless last year — up from 93.4% in 2023. Each Brit made an average of 236 contactless payments and spent £3,803. The over-65 demographic saw the fastest growth, highlighting convenience as a key factor. For purchases above £100, chip and PIN still leads at 78%, though mobile wallets are gaining traction with Gen Z and millennials.

Read more here.

UK Tipping App Launched

thankyü, a UK startup, has introduced an app that lets customers tip hospitality workers by tapping their phones against wearable tipping bands. Tips can be left via Apple Pay, Google Pay, or direct from a bank account using open banking. The startup says the service is designed to be low-cost for venues, with funds reaching workers directly and immediately. Early adopters include small hospitality businesses and food trucks. The model has proved particularly attractive where traditional tipping is awkward or impractical.

Read the full article here.

Global Payments to Acquire Worldpay

Global Payments has announced an agreement to acquire Worldpay’s merchant acquiring business for $17.5 billion. The transaction is expected to close in Q1 2026. The deal will significantly expand Global Payments’ acquiring footprint and strengthen its position in global commerce enablement. FIS will retain a 45% ownership stake in the new joint venture, while Global Payments will take operational control.

The acquisition aims to combine Worldpay’s global merchant relationships and scale with Global Payments’ software-driven strategy. The companies expect $400 million in run-rate synergies within three years, with an emphasis on innovation and enhanced customer solutions across vertical markets.

Read more here.

Visa and Mastercard Accused of Card Monopoly by UK Watchdog

The UK’s payment systems regulator has raised concerns over Visa and Mastercard’s market dominance. The regulator found that limited competition has allowed both companies to increase fees by at least 25% since 2017 — costing UK businesses over £170 million annually. The regulator is considering measures to improve competition and reduce costs for merchants.

Read more here.

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