UK Mobile Payments: After a Slow Start in a Competitive Space, Some Signs of Progress - eMarketer
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UK Mobile Payments: After a Slow Start in a Competitive Space, Some Signs of Progress

eMarketer Report

By: eMarketer

Published: January 23, 2017

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

Although the UK is one of the world’s leading digital nations, mobile payment adoption among its consumers has been muted. Against already-entrenched contactless cards, alternatives like mobile payments are struggling to take hold. There are some green shoots, though, with younger age groups proving to be the most engaged.

  • Contactless cards are already well established in the UK. Their usage is accounting for greater proportions of in-store payments and, as such, mobile contactless payments are struggling to gain any kind of significant foothold in the market.
  • Mobile payments used for transport or peer-to-peer (P2P) transactions are beginning to see some uptake, while mobile wallets—of which proximity payments are just one part—offer potential benefits for consumers.
  • UK millennials are far more likely to use mobile payment solutions, but even among this demographic, adoption isn’t as high when compared with most other digital behaviors.
  • Trust and security issues remain the biggest obstacles for mobile payments. However, higher levels of trust in longer-established digital wallet providers like PayPal point to good potential to overcome such issues.
  • Education about the security benefits offered and the many advantages that a wider, conjoined mobile wallet offering represents will be key in putting mobile payments firmly in the minds of UK consumers.

"Younger age groups are more likely than their older counterparts in Great Britain to use mobile payment solutions. However, the overall average that internet users spend on mobile payments is proportionally small—just 8% of monthly disposable income, according to VoucherCodes.co.uk."

Table of Contents

State of the Market: Mobile Payments Face a Strong Headwind

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Key Trends: Market Drivers, Plus a Few More Constraints

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The Future of Mobile Payments

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17 charts are included in the full report:

UK Mobile Payments: After a Slow Start in a Competitive Space, Some Signs of Progress

Average Monthly Amount Spent on Mobile Payments by Internet Users in Great Britain, by Age, Aug 2016

State of the Market: Mobile Payments Face a Strong Headwind

UK Retail Transaction Share, by Payment Method, 2011-2015 (millions and % of total)

UK Payment Transaction Volume, by Payment Type, 2015 & 2025 (millions)

Mobile Proximity Payments Struggle to Take Hold

Average Monthly Amount Spent on Mobile Payments by Internet Users in Great Britain, by Age, Aug 2016

Change in Frequency with Which UK Internet Users Conduct Select Shopping Activities, June 2016 (% of respondents)

UK Paym* Transaction Volume and Value, Q3 2015-Q2 2016

Mobile Buyers in Select Countries Who Have Used a Mobile Wallet to Pay for Products/Services Purchased via Mobile Device, Aug 2016 (% of respondents)

Retail Ecommerce Sales Share in Select Countries, by Payment Method, 2015 (% of total)

Key Trends: Market Drivers, Plus a Few More Constraints

UK Internet Users' Preferred Payment Methods, by Age, June 2016 (% of respondents in each group)

Mobile Device Users Ages 18-35 in Select Countries in Western Europe Who Use Mobile Payments*, July 2016 (% of respondents)

UK Paym Sender Share, by Age, Jan & July 2016 (% of total)

UK Smartphone Owners Who Have Used P2P Payments*, by Age, June 2016 (% of respondents in each group)

Trust and Security Remain Big Issues

Organizations/Entities that UK Consumers Trust with Their Personal Information, March 2016 (% of respondents)

Brands from Which UK Smartphone Owners Would Trust a Smartphone Wallet App, Sep 2015, Feb & June 2016 (% of respondents)

Extent to Which UK Mobile Phone Users Feel Secure About Mobile Payments, by Demographic, Oct 2015 (% of respondents in each group)

The Future of Mobile Payments

Features that Would Influence UK Smartphone Owners to Make In-Store Mobile Payments, June 2016 (% of respondents)

Education Beyond Proximity Payments Is Also Important

Mobile Wallet Features that UK/US Internet Users Have Used vs. Would Like to Use, June 2016 (% of respondents)