As per MRFR analysis, the UK Mobile Payments Market Size was estimated at 126 (USD Million) in 2023.The UK Mobile Payments Market is expected to grow from 143.5(USD Million) in 2024 to 717.5 (USD Million) by 2035. The UK Mobile Payments Market CAGR (growth rate) is expected to be around 15.756% during the forecast period (2025 - 2035).
The UK mobile payments market is experiencing significant growth, driven by several key factors. One primary market driver is the increasing adoption of smartphones and mobile devices among consumers, which has led to a rise in mobile wallets and contactless payment solutions. The convenience of making transactions via mobile apps has enhanced consumer preferences for quick and easy payment methods, pushing retailers to adopt mobile payment systems to meet customer expectations.Â
The UK government has also supported digital payment advancements through regulations aimed at promoting competition and innovation in the finance sector. Opportunities abound in the UK mobile payments market, particularly in expanding services to underserved demographics and sectors, such as small businesses and rural areas.As society moves away from cash, there are more opportunities to invest in technology that can improve infrastructure and digital literacy. As more people use mobile payments, companies have new opportunities to explore, like biometric payment authentication, which is a new way to verify payments.Â
Recent trends in the UK mobile payments market show that payment systems are using more and more advanced technologies, like blockchain and near-field communication (NFC). This not only makes transactions safer, but it also makes them go more smoothly, which is good for both customers and businesses. The COVID-19 pandemic has sped up the move toward digital and contactless payments because people are looking for safer ways to pay.
The overall growth in e-commerce and the implementation of regulations surrounding digital transactions further strengthen the trend towards a more mobile-centric approach in the UK’s financial landscape.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The growth of the UK Mobile Payments Market is significantly driven by the rising penetration of smartphones in the UK. According to the Office for National Statistics, as of the end of 2022, over 90% of adults in the UK owned a smartphone, demonstrating a steady increase from approximately 78% in 2015. This enormous accessibility enables a higher number of users to adopt mobile payment solutions. Established companies such as Apple, with its Apple Pay service, and Google, through Google Pay, have led the charge in facilitating seamless mobile payment experiences.
As more consumers embrace smartphones, the functionality for safe and convenient transactions continues to promote growth in the UK Mobile Payments Market. The integration of biometric security features such as fingerprint and facial recognition also adds to user confidence, further contributing to the market's expansion. This trend is expected to sustain growth as technology advances and more services are digitized, reflecting a robust evolution in consumer payment behavior across the UK.
The shift towards contactless payments has become a substantial driver for the UK Mobile Payments Market. The UK Cards Association reported that in 2021, contactless payments accounted for approximately 45% of all card transactions, up from 20% in 2016. This dramatic increase indicates a growing consumer preference for quick and hassle-free payment options.Â
Major retailers in the UK, such as Tesco and Sainsbury's, have widely adopted this technology, making it easier and more convenient for shoppers to engage in mobile payment transactions.This trend is likely to continue growing, as the British government aims to support digital payment systems through initiatives that simplify the payment process while ensuring security standards are met.
The expansion of e-commerce activities in the UK is significantly propelling the growth of the UK Mobile Payments Market. According to a report from the Office for National Statistics, online retail sales in the UK accounted for 27.9% of total retail sales in 2021, a considerable leap from around 18% in 2020, primarily driven by changing consumer behavior during the pandemic.Â
Major online platforms such as Amazon and eBay are integrating mobile payment solutions, making it essential for consumers to utilize mobile payment methods.This trend is expected to persist as more consumers are inclined to shop online, turning to their smartphones for payments. The UK government has also been encouraging digital agility in businesses, leading to a conducive environment for further adoption of mobile payment technologies.
The UK Mobile Payments Market is experiencing substantial growth within the Transaction Type segment, which is instrumental in shaping the overall landscape of mobile financial services. Key drivers of this expansion include the increasing adoption of smartphones, the rise of contactless payment methods, and an overall shift towards digital wallets among consumers. Remote Payments facilitate transactions where the consumer is not physically present, making it a highly efficient method for online shopping and other digital services. This segment has gained traction as more retailers leverage e-commerce platforms to cater to consumers' demand for convenience.
Proximity Payments, enabled through near-field communication technology, have also surged in popularity, allowing seamless transactions at retail stores, enhancing the shopping experience by significantly reducing transaction times. In-App Payments cater to users within mobile applications, providing a frictionless purchasing process, particularly in e-commerce and entertainment sectors, where in-app purchases have become common. Person-to-Person Payments represent another vital aspect of the local market, catering to the growing demand for easy and quick money transfers between individuals, whether for splitting bills or sending gifts.
This segment promotes social interaction and financial inclusion, particularly among younger consumers who gravitate towards digital alternatives. The UK’s regulatory landscape supports these innovations, with the government promoting fintech initiatives, thereby ensuring a robust infrastructure to accommodate these changing dynamics in consumer behavior and technology adoption. Each aspect of the Transaction Type segment presents unique opportunities and challenges, reflecting the evolving preferences of UK consumers and further solidifying the UK Mobile Payments Market's position in the global arena.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The Payment Method segment within the UK Mobile Payments Market encompasses various methods critical to consumer transactions. Credit and debit cards remain a cornerstone of mobile payments, favored for their widespread acceptance and ease of use. Mobile wallets have surged in popularity, driven by convenience and enhanced security features, enabling users to store multiple payment options all in one place. This trend aligns with the broader consumer shift towards digital solutions following the increase in contactless payment preferences.
Additionally, bank transfers have gained traction, particularly for larger transactions, offering a direct method of payment without the intermediary step of card processing.The diverse options available within the Payment Method segment cater to varying consumer preferences, which supports the overall growth of the UK Mobile Payments Market.Â
Moreover, the rise in e-commerce activity and the integration of payment solutions into mobile apps underscore the need for adaptability in payment methods to meet market demand effectively. Insights into the UK Mobile Payments Market revenue highlight the importance of these payment methods, reflecting their significant role in the evolving banking landscape and digital economy.The continuous development in technology and consumer habits is expected to further influence these payment methods.
The UK Mobile Payments Market has shown significant potential, particularly in its End User segment, which encompasses Retail Consumers, Businesses, and Government. Retail Consumers are predominantly driving market growth as they embrace mobile payment solutions for convenience and efficiency, leading to a shift in shopping behaviors and payment preferences. The increasing penetration of smartphones and contactless technology fuels this trend. Businesses are integrating mobile payment systems to streamline transactions and enhance customer experience, recognizing the importance of mobile commerce in staying competitive.
In contrast, the Government is exploring mobile payment options for public services, improving accessibility and efficiency of transactions related to taxes, fines, and licenses, which fosters greater public engagement. As more users adopt mobile payments, the need for secure and reliable transaction systems becomes paramount. Overall, the interplay between these End User categories shapes the evolving landscape of the UK Mobile Payments Market, reflecting broader trends in digitalization and consumer behavior shifts. This diversity in End Users underscores the multifaceted nature of market dynamics and the opportunities that lie ahead in tapping into these various sectors.
The Platform segment of the UK Mobile Payments Market has shown considerable growth, contributing significantly to the overall market dynamics. Various platforms such as Android, iOS, and Web-Based solutions play a pivotal role in facilitating mobile transactions among consumers and businesses alike. Android-based applications dominate the market due to their widespread adoption and flexibility for developers. This platform's open-source nature allows for a range of payment solutions, driving user engagement and transaction volumes.Â
Meanwhile, iOS platforms offer robust security features and a streamlined user experience, appealing to a demographic that prioritizes privacy and convenience.Web-Based platforms bring additional accessibility, catering to users who prefer browser-based transactions over downloading applications. The growth drivers in this segment include the increasing smartphone penetration rate in the UK, advancements in technology, and the evolving consumer preferences towards cashless transactions.Â
Additionally, the UK government has been supportive of digital payment initiatives, further encouraging adoption. The trends suggest a shift towards integrating mobile payments with emerging technologies such as Artificial Intelligence and contactless payments, paving the way for future innovations within the Platform segment of the UK Mobile Payments Market.
The UK Mobile Payments Market is a rapidly evolving landscape characterized by increasing adoption rates and technological advancements that drive competition among various service providers. With the shift towards digital and contactless payments, mobile payment solutions have become essential for both consumers and businesses. Many players in this market are striving to offer innovative features and enhanced user experiences to capture market share.Â
This competition is marked by a diverse array of solutions, ranging from digital wallets to in-app payments, each tailored to meet the changing needs of consumers and merchants in a dynamic financial ecosystem. The overall market is influenced by regulatory changes, consumer behavior, and the ongoing development of payment technologies, leading to an exciting yet challenging environment for companies operating in this space.
Soldo has established itself as a significant player in the UK Mobile Payments Market by offering a unique solution that combines expense management with prepaid cards. The company's strength lies in its ability to provide businesses with an easy way to manage employee spending while maintaining control over financial health. Soldo’s platform allows companies to set spending limits and track expenses in real-time, which appeals to small and medium-sized enterprises looking for efficiency and transparency in their financial operations.Â
By focusing on a niche market segment, Soldo has carved out a solid presence, leveraging its digital capabilities to cater specifically to the UK market. The combination of user-friendly technology and strong customer support positions Soldo as a trusted provider among local businesses.Adyen is another formidable player within the UK Mobile Payments Market, known for its comprehensive payment solutions that encompass online, mobile, and in-store transactions. The company offers an all-in-one platform that integrates various payment methods, providing businesses with the flexibility and scalability necessary to accommodate diverse customer preferences.Â
Adyen’s strengths lie in its ability to simplify the payment process while ensuring security and compliance with local regulations. The company's robust technology infrastructure supports a wide range of financial services, enhancing the user experience for both merchants and consumers. Furthermore, Adyen has engaged in strategic mergers and acquisitions to expand its capabilities and market reach in the UK, reinforcing its position as a leading payment processor. The emphasis on innovation and customer-centric solutions enables Adyen to stay competitive in the ever-changing landscape of mobile payments, making it a significant force in the UK market.
The UK Mobile Payments Market has seen significant developments recently, particularly with the rise of contactless payments during the ongoing shift towards digital transactions. Both Soldo and Revolut are expanding their services to cater to evolving consumer preferences. In October 2023, PayPal announced an upgrade to its mobile app to enhance user experience, while Adyen and Worldpay continue to compete aggressively for market share with innovative solutions tailored for small to medium enterprises.Â
Barclays and Visa are also collaborating to improve payment processing speeds. Meanwhile, Apple's recent launch of Apple Pay Later in the UK seeks to attract a younger demographic interested in flexible payment options. The UK government has been promoting financial technology innovation, which is expected to foster growth among major players such as Mastercard and Google Pay.Â
Furthermore, the market has witnessed mergers and acquisitions with Zelle indicating strategic partnerships that strengthen its position in mobile payments, although no substantial acquisitions have emerged from the specified companies in recent months. Over the past two to three years, the market has validated its robustness, especially during the pandemic, showcasing an increase in mobile payment adoption rates across the country.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 126.0 (USD Million) |
| MARKET SIZE 2024 | 143.5 (USD Million) |
| MARKET SIZE 2035 | 717.5 (USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 15.756% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Soldo, Adyen, Worldpay, Barclays, Visa, Revolut, PayPal, Apple, Samsung, Mastercard, Google, Zelle, PaymentSense, TransferWise, Monzo |
| SEGMENTS COVERED | Transaction Type, Payment Method, End User, Platform |
| KEY MARKET OPPORTUNITIES | Contactless payment adoption growth, Increased smartphone penetration, Integration with e-commerce platforms, Enhanced security features demand, Real-time payment solutions expansion |
| KEY MARKET DYNAMICS | increased smartphone penetration, growing e-commerce adoption, rise of contactless payments, enhanced security measures, regulatory support for innovation |
| COUNTRIES COVERED | UK |
Frequently Asked Questions (FAQ) :
The UK Mobile Payments Market is expected to be valued at 143.5 million USD in 2024.
By 2035, the market value is projected to reach 717.5 million USD.
The projected CAGR for the UK Mobile Payments Market from 2025 to 2035 is 15.756%.
Major players in the market include Soldo, Adyen, Worldpay, Barclays, Visa, Revolut, PayPal, Apple, Samsung, Mastercard, Google, Zelle, PaymentSense, TransferWise, and Monzo.
The Remote Payments segment is expected to be valued at 300.0 million USD by 2035.
The Proximity Payments segment is valued at 40.0 million USD in 2024.
The In-App Payments segment is projected to reach 150.0 million USD by 2035.
The Person-to-Person Payments segment is expected to be worth 13.5 million USD in 2024.
Growth opportunities in the market include the increasing adoption of digital wallets and advancements in mobile technology.
Challenges in the market include security concerns and regulatory compliance.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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