As technology continues to advance, a significant portion of the UK population finds itself excluded from accessing deals, discounts, and essential services due to the rise of app-only systems. Approximately 8% of people aged 16 or over in the UK, translating to just under 4.5 million individuals, do not own a smartphone. This digital divide disproportionately affects older individuals and those who choose not to use mobile apps, leaving them "locked out" of opportunities available to others.
A growing trend among businesses and local councils is the shift towards app-only systems as a cost-saving measure. For example, some councils are removing parking ticket machines that accept debit and credit cards, encouraging the use of various parking apps instead. Currently, the UK hosts over 30 different parking apps, with some individuals needing to download eight to 10 apps to manage their parking needs. To address the complexity, the Department for Transport is developing a "national parking platform" (NPP) aimed at allowing drivers to use a single app for all parking payments.
The Payment Choice Alliance, a lobby group advocating for consumer choice, has criticized app-only schemes like Lidl's loyalty program. The Lidl Plus scheme requires customers to download an app and provide an email address to access rewards, excluding those without smartphones. Similarly, fast-food chain Subway offers its loyalty points, convertible into "Subway Cash," exclusively through its app, leaving former plastic cardholders in the lurch.
“App-only accounts are the new ‘online-only’ accounts,” – Anna Bowes
“While not for everyone, apps are becoming far more popular with savers, especially as they can often be found paying some of the best rates.” – Anna Bowes
Retailers such as Asos and Screwfix have also adopted "app exclusive" campaigns, further alienating customers without access to mobile technology. Meanwhile, Sizzling Pubs has launched enticing app-only deals, such as 40% off main meals at select locations, drawing criticism for excluding non-app users from significant savings.
“forms part of our commitment to providing customers with the best value” – Lidl
Critics argue that businesses are failing to consider the impact on those most in need of discounts. Ron Delnevo of the Payment Choice Alliance points out that the people most in need of savings are often those without smartphones.
“The people who probably need the discounts most are the people who can’t afford or don’t have a smartphone.” – Ron Delnevo
“In this country we’re being treated like sheep,” – Ron Delnevo
“We’re always being told there’s no alternative.” – Ron Delnevo
The trend extends beyond retail and dining sectors. Some coffee shop chains like Harris + Hoole have transitioned to app-only loyalty schemes. Savings expert Anna Bowes from The Private Office notes that millions miss out on competitive savings rates due to these restrictions.
“when in reality you want one that you like and you’re happy using and that you can use everywhere” – Simon Williams
The impact on daily life can be profound. Age UK highlights how reliance on apps can lead to missed appointments, including crucial visits to general practitioners.
“In some cases this has meant missing important appointments like seeing their GP,” – Age UK
Even drivers face obstacles as councils withdraw card payment options from parking machines. The Barnet Society expresses concern for elderly drivers who struggle with app-based systems.
“Withdrawal of the ability to pay by card, following the removal of the payment by cash facility, will disappoint some drivers, especially the elderly, who find it difficult to use the PayByPhone app” – Barnet Society website