More and more customers in the UK are choosing mobile payments over cash or cards. In many cases, all they need to do is scan a QR code to pay with their mobile phone. From the customer’s point of view, they get the option not to carry their bulky wallets around, keep track of different types of cards, and sort out cash change. Overall, mobile payments give buyers one less thing to worry about because they are user-friendly and save time.
You can also expand your payment methods to include mobile payments for your business, ultimately bringing in more customers and sales. In this blog, we will look at the top mobile payment statistics and trends so you know how popular mobile payments are amongst UK consumers.
What are mobile payments?
Mobile payments allow you to transfer funds to another account, including a business account, digitally. To process the transaction, you need to have a digital device like smartphone, tablet, or smartwatch and a mobile application (a mobile wallet or a banking app).
How do mobile payments work?
The transaction is initiated when the device is in the range of 2-3 inches of the QR code or the POS till. This is called a near-field communication technology, which forms the basis of most mobile payment methods.
You can either tap your device on the till or scan a QR code, and your phone will be redirected to the application to complete the payment. Finally, you enter the amount and complete the transaction. While tapping or scanning are the most common methods, there are other ways to use mobile payments, too, which we’ll discuss next.
4 types of mobile payment methods
You can pay with your phone in multiple ways, and each method has its benefits. Let’s discuss the five most common mobile payment methods people use in the UK.
1. Contactless payments
This is when you pay by tapping your smartphone on a card machine. It works using the near-field communication technology that we mentioned earlier in the blog, too. This method is commonly used in grocery stores, shopping centers, and restaurants where there is a fixed payment till to pay at.
2. QR code payments
This method is similar to a contactless payment, but instead of tapping a card machine, you use your payment application to initiate the payment. Use the built-in scanner of the application to scan the business’s QR code at the checkout. This code brings up the payment information, like the account number of the business, after which you can enter the amount to confirm the transfer. It is more affordable than owning a card machine, so small businesses like street vendors, stalls, and cafes prefer it.
3. Mobile wallets
Mobile wallets (Apple Pay, Google Pay, and Samsung Pay) provide a replacement for carrying around your physical cards to pay. If you use more than one wallet, you can keep all of them in one place for quick payment options.
The mobile wallet applications store your card details on your phone. You can easily make a payment by accessing the application and tapping your phone at the card machine.
4. Online banking options
With this method, you can use your bank’s application to send and receive money straight from your account. Depending on the features of the application, you can either manually enter the bank account details or scan a QR code to initiate the transaction.
Key mobile payment statistics (updated for 2025)
It is important to understand the condition of mobile payment trends in the UK so your business can keep up with them.
Global mobile payment statistics:
- In 2023, global mobile payment transaction volume reached $2.3 trillion/£1.8 trillion., which was a 16.6% annual increase (Business of Apps).
- Over 2 billion people used mobile payments in 2023 worldwide (Business of Apps).
- The global mobile payment market is expected to grow from $3.84 trillion/£2.99 trillion in 2024 to $27.81 trillion/£21.7 trillion by 2032, at a CAGR of 28.1%. (Fortune Business Insights).
UK mobile payment statistics:
- In 2024, 26% of UK respondents said they had used their smartphone to pay for usual expenses in the whole year (Statista).
- UK’s digital payment market is expected to reach $11.5 trillion/£8.9 trillion in 2034 (Statista).
- UK’s digital payments market is expected to increase by 9.52% by 2028 (Statista).
4 Reasons why more people are using mobile payments
More people in the UK (and around the world) prefer mobile payments over other methods. Here are four big reasons behind this changing preference:
| Reason | Impact |
|---|---|
|
Increased smartphone use |
Makes it easier for more people to access mobile payment options. |
|
Increase in the popularity of digital wallets. |
Offers an alternative to physical cards. |
|
Contactless payments. |
Improves the overall payment experience. |
|
More businesses are accepting mobile payments. |
Increases convenience for customers.
|
1. Increasing smartphone penetration
- There are 7.2 billion smartphones in the world, which amount to 90% of the total population by the year 2024 (Exploding Topics).
- The mobile payment market in the UK has reached more than 10 million users since the coronavirus (Statista).
2. Expansion of mobile wallets
- Mobile wallets made up for 49% of global e-commerce transactions in 2023 (Clealry Payments).
- In China, over 90% of consumers use local mobile payment options like AliPay and WeChatPay for daily purchases (Clearly Payments).
- Over half of the UK adults now use digital wallets, with services like Apple Pay and Google Pay (Reuters).
3. Growth of contactless payments
- Contactless transactions are predicted to reach $10 trillion in value by the year 2027 (Merchant Savvy).
- In 2022, 37% of all payments were made through contactless methods in the UK (Compare Banks).
- RBR Global forecasted that 81% of all credit cards will feature contactless payment technology by 2026 (NCFW).
4. Adoption by small and medium enterprises (SMEs)
- 34% of UK adults used mobile contactless payments at least once a month in 2023 (UK Finance).
- Mobile wallets contributed 28.6% to the global POS transactions in 2021 (World Pay Global).
- 24% of UK consumers have a digital-only bank account. This is 50% for the people aged between 18 and 24 (Compare Banks).
- Mobile wallet transactions were valued at $188 billion/£146.6 billion in 2020 and will increase to $708 billion/£552.2 billion in 2025, in Europe (Merchant Savvy).
- E-commerce payments done by mobile wallets were recorded at 51.7% and that of POS payments at 33.4% (World Pay Global).
Mobile payment stats prove the benefits for businesses
Mobile payments have revolutionised the way businesses operate. They offer numerous advantages such as increased efficiency, better customer satisfaction and boosted revenue.
- 70% of millennials are happy about the discounts and rewards mobile payments offer (Monei).
- 78% of Americans want to use their mobile wallets anywhere they wish (Marqeta).
- 41% of consumers shy away from shopping at a store that is devoid of contactless payment support (USA Visa).
- 55.8 million Americans used Apple Pay in 2023, which is nearly a 10% growth from 2022 (Insider Intelligence).
- The adoption of Strong Customer Authentication (SCA) has reduced online payment fraud by 25% in the UK (Barclays).
Challenges and barriers to mobile payment adoption
While mobile payments offer numerous advantages, several challenges hinder their widespread adoption. Below are some key obstacles.
1. Safety
- 62% of consumers express worries about the safety of their sensitive information when using mobile payments (Go-Globe).
- 40% of U.S. internet users cite digital security as their main concern for online transactions (Wifi Talents).
2. Lack of consumer awareness
60% of consumers are still feeling shy about using contactless payments because they lack an understanding of the technology (Philadelphia Fed).
Mobile payment stats that show its growing rate of adoption
- The average transaction value of mobile shopping is expected to be around $120/£95 in 2024 (Wiser Notify).
- Mobile apps recorded a commerce sales conversion rate of 3.5% which is higher than the 2% conversion rate for mobile websites (Wiser Notify).
- In 2023, mobile e-commerce sales in the UK were £92 billion, up from £50 billion in 2019 (Statista).
- In 2023, about 66% of restaurants in the US and Canada accepted mobile payments (Touch Bistro).
- 30% of hotel bookings were made through mobile wallets in 2019 (Phocus Wire).
- 24% of consumers said they frequently use mobile wallets like Apple and Google Pay in the hospitality business (Zonal CGA).
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FAQs
China is the largest adopter of mobile payments. About 87% of the residents used contactless payment methods. India comes in second with 45.6%, and the United States is 3rd with 43.2%. This is the data recorded in 2021.
Disadvantages include security concerns like data breaches, reliance on mobile devices, limited infrastructure in some areas and potential technical issues. Battery dependency and lack of universal acceptance add to the barriers
People are using mobile payments globally for their speed, convenience and enhanced security features. They simplify transactions, reduce the need for cash or cards and integrate with mobile wallets like Apple Pay and Google Pay easily. Additionally, features like discounts and loyalty programs make them even more appealing to consumers.
