Over half UK adults now use mobile wallets, according to figures from UK Finance’s Payment Markets Report for 2024.
Up 15% from the previous year, the sharp increase in mobile wallet usage is one example of the rapid and continuous evolution of payment trends.
The impact of the 2020 pandemic saw the UK hastily digitise many of its services, leading to a decline in the use of cash. Almost six years on, the cashless trend continues to boom with cash payments now making up less than 10% of all payments for the first time ever.
Though the pandemic accelerated the shift to cashless payments, it also quickly highlighted the convenience of paying digitally. This, along with the ability to track spending, payment security and increased hygiene, meant that most consumers happily adopted the trend. And it wasn’t just younger demographics; older consumers were also keen to digitise their spending.
With digitalisation readily embraced by most consumers, the digital evolution continues... No longer just ‘card holders’ on a phone, mobile/digital wallets are fast becoming all-in-one financial hubs. 2025 has seen developments shifting digital wallets to ‘super apps’ with functionality now including:
Integration of Loyalty and Rewards
Automatically tracking points, cashback, and offers. No need for separate loyalty cards.
Digital Identity Verification
Digital wallets are now able to store digital identity information. With the government experimenting with digital identification, digital wallets will no longer just be essential for payments but for authentication too.
Access to Financing and Savings Tools
In the US, Apple now offers its customers high interest savings options through Apple Wallet. Other providers have or are following suit, and this trend is likely to continue growing globally.
Omnichannel Integration
Whether consumers are spending instore, online or even managing their subscription, digital wallets now offer a frictionless, omnichannel experience.
So, what’s the forecast for payments according to UK Finance?
Card payments will remain the most popular payment method.
Cash payments will continue to decline falling to just 4% by 2034.
Digital wallets will become more ingrained as a payment method with further adoption from older age groups.
New services such as ‘Pay by Bank’ will be introduced, allowing consumers to ditch their card and pay straight from their bank instead.
We’re looking forward to evolving alongside the digital payment evolution and providing support for all our clients. If you’d like to speak to us about how we can assist with your business’ digitalisation then give us a call 0333 577 6001 or submit your email below.
