Mobile Payments Surge: Half of UK Adults Now Tapping to Pay
New banking data indicates that mobile payments are rapidly gaining popularity in the UK. According to UK Finance, half of all adults are now regularly using their phones to pay for goods and services, marking a significant shift in consumer behavior. This surge is driven by the convenience of services like Apple Pay and Google Pay.
The Rise of Mobile Wallets Across Age Groups
Adrian Buckle, head of research at UK Finance, noted a substantial "change of consumer behaviour," emphasizing that people are increasingly comfortable leaving home with just their phones. In 2024, 50% of UK adults used mobile payments at least once a month, a notable increase from 34% in 2023.
Consumers are now frequently storing card details on phones or watches, opting for contactless payments secured with facial or fingerprint verification rather than using a PIN. This trend is particularly strong among younger adults.
- Younger Adults Leading the Charge: 78% of 16 to 24-year-olds are regular mobile payment users.
- Older Generations Adapting: Nearly 60% (59%) of 35 to 44-year-olds are now making mobile payments, up from 38% the previous year.
- Growth Among Seniors: 19% of those aged 65 and over are using mobile payments.
The Impact on Traditional Payment Methods
While mobile payments are on the rise, the use of physical contactless cards has seen a slight decrease. Debit cards, however, remain the most popular payment method. The reliance on cash is also dwindling, although approximately 50 million people still utilize ATMs. "Cash fell below 10% of all payments," stated Mr. Buckle.
Buy Now Pay Later services are also contributing to this shift, becoming more prevalent even among older age groups, illustrating the widespread adoption of digital payment solutions.
"These changes weren't just driven by younger consumers. We saw growth in mobile wallets and Buy Now Pay Later across older age groups too, highlighting how digital payments are becoming more mainstream across the board." - Adrian Buckle, UK Finance
