Half of UK adults now make mobile payments

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A major shift in consumer behaviour has been recorded across the UK, with new data revealing that half of British adults now regularly make mobile payments simply by tapping their phone or watch.

Figures from the trade body UK Finance show that 2024 was the first year that 50% of adults used services like Apple Pay or Google Pay at least once a month, a significant jump from 34% in 2023.

This surge is attributed to consumers becoming more comfortable leaving their physical wallets at home, relying instead on the security of digital payments verified by facial or fingerprint recognition, rather than a traditional PIN.

Adrian Buckle, head of research at UK Finance, noted that the change is becoming mainstream across all age demographics. While 78% of 16 to 24-year-olds are the biggest adopters, older groups are quickly catching up.

For instance, the proportion of 35 to 44-year-olds regularly making mobile payments jumped from 38% in 2023 to nearly two-thirds (59%) in 2024. Even among those aged 65 and over, a fifth (19%) now frequently pay by phone.

The increased reliance on digital wallets has caused the use of physical contactless cards to dip slightly, although debit cards remain the most popular overall payment method. The shift further marginalises cash, which now accounts for less than 10% of all payments.

Despite the digital acceleration, consumer groups are warning that cash must be protected. Campaigners emphasize that vulnerable people and those on lower incomes still rely heavily on physical currency for budgeting.

Furthermore, concerns have been raised about the resilience of a digital-only payment system, particularly the lack of back-up options during a widespread power or system outage.

The UK’s financial regulator is already preparing for a more digital future by proposing that banks and card providers be allowed to set their own contactless payment limits, potentially removing the current £100 cap for cards and making PIN entry even rarer.

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