Breaking it down: More than three-quarters (77%) of consumers in the UK have swapped their physical wallets for mobile payments, according to Marqeta research.
Consumers are also open to cryptocurrency use as a payment method: 26% of those surveyed own crypto, and 82% of them are keen to use it like a debit card at the point-of-sale.
Beyond the numbers: Payment preferences are evolving in the UK, and consumers are becoming increasingly reliant on mobile wallets.
Behaviors spurred by the pandemic seem to have stuck, winning over users with speed and ease. More consumers will opt for mobile wallets as cash use declines and digital payments become more popular. UK proximity mobile payment users are expected to reach 12.0 million in 2022, up 21.2% year over year (YoY), according to our forecast.
The opportunity: To win new customers, payment providers should emphasize the ease and simplicity of mobile payments. They also need to be innovative to tap customers who are open to embracing new technology like crypto payments.
Introducing features that make mobile wallets faster and even more convenient without compromising security can help cement customer loyalty in a notoriously competitive market. Other approaches to differentiation could include:
The bigger picture: Despite quickly growing mobile wallet demand, cash preservation is still top of mind in the UK.
The UK government has taken many steps in the past year to ensure that the more than 5 million adults in the UK who rely on cash as their primary payment method retain accessibility. Most recently, the Financial Conduct Authority (FCA) was granted new powers to ensure UK citizens retain the ability to access cash.
Go further: For more information on how providers can tap into mobile payments’ growth in the UK, read our report.