Recent data reveals that half of UK adults are now regularly using mobile payments, marking a significant shift in consumer behavior. Younger demographics are leading the charge more than ever before. No wonder 78% of people age 16 to 24 have used mobile payment methods in the last year. Of those 35- to 44-year-olds, 59% said they regularly use mobile payments—up from just 15% in 2020. That’s a notable jump from only 38% in 2023.
Mobile payment adoption is going through the roof. Over the past year, half of all adults say they use this approach at least once a month – an increase of 16 percentage points from the previous year when only a third were doing it. This increasing dependency on mobile technology is representative of a larger societal shift toward convenience and digital transactions.
Adrian Buckle, a spokesperson for the industry, noted that “people are more comfortable leaving their home with just their phone.” This position is reinforced by the continued downward trajectory of cash usage. Indeed, cash is used for less than 10% of all payments today. Even with close to 50 million people still using cash at ATMs, the writing is on the wall—the world clearly has a rapidly growing preference for digital transactions.
Among these older demographics, mobile payment usage is still pretty scarce but taking off. Only 19% of older adults (65 years and over) said they regularly use their phones to pay. Younger consumers are primarily driving the surge into mobile payments. Meanwhile, older generations are slowly coming to enjoy this technology.
With cash transactions quickly declining, the UK’s financial regulator, the Financial Conduct Authority, recently released a new regulatory framework and guidelines related to contactless payments. Banks and card providers will be given the ability to establish their own payment ceilings. Negotiations in the UK are focused on removing the current £100 cap altogether. These recent developments are emblematic of the changing world of payment methods. They want to stay ahead of the growing number of consumers who prefer digital options.
Adrian Roberts, Link’s deputy chief executive, cash access and the ATM network. He was not shy about raising alarms about the transition. He stated, “While the number of people relying on cash continues to fall, we know that those who do are often on lower incomes or the more vulnerable.” He cautioned against hastily moving towards a digital-only society, emphasizing that “we must not sleepwalk into a digital-only society before everyone is ready.”