Recent banking data indicates that approximately half of UK adults are now regularly using mobile payments, a notable increase attributed to services such as Apple Pay and Google Pay. According to figures from UK Finance, there has been a significant rise in mobile payment adoption across various age demographics.
Adrian Buckle, the head of research at UK Finance, reported that last year marked a milestone, with 50% of adults using mobile payment methods at least once a month, compared to 34% in 2023. This shift in consumer behavior suggests that many individuals feel more at ease leaving home with only their phone for transactions. More consumers are opting to store card details in mobile devices, which allow contactless payments verified through facial recognition or fingerprints, instead of traditional PIN entry.
Among younger consumers, approximately 78% of those aged 16 to 24 consistently utilized mobile payments last year, with even higher registration rates. Older age groups are also increasingly participating; for instance, 59% of individuals aged 35 to 44 regularly made mobile payments in 2024, a rise from 38% the year prior. Meanwhile, 19% of individuals aged 65 and over reported frequent use of mobile payment options.
The growth in mobile payments has resulted in a slight decline in the use of physical contactless cards, though debit cards remain the most common payment method. The trend away from cash continues, with cash accounting for less than 10% of all transactions, although around 50 million people still accessed cash via ATMs.
Despite the decrease in cash usage, there remains a call from campaigners to ensure that notes and coins remain available, especially for those on lower incomes. Concerns have been raised about the implications of a fully digital payment society, particularly during potential power outages. Recent discussions among MPs have suggested that there may be a need to mandate cash acceptance in stores to safeguard those who depend on it. Additionally, the UK’s financial regulator is considering allowing banks and card providers to set their own limits on contactless payments, potentially eliminating the current £100 cap and further reducing the frequency of PIN entries.
Source: https://www.bbc.com/news/articles/c2ejvld0ypyo?at_medium=RSS&at_campaign=rss