UK Mobile Wallet Market Research Report By Mode of Payment (NFC, Remote Payment) and By Type (Proximity, Remote)-Forecast to 2035

UK Mobile Wallet Market Overview

As per MRFR analysis, the UK Mobile Wallet Market Size was estimated at 121.9 (USD Million) in 2023.The UK Mobile Wallet Market is expected to grow from 143.5(USD Million) in 2024 to 721.5 (USD Million) by 2035. The UK Mobile Wallet Market CAGR (growth rate) is expected to be around 15.814% during the forecast period (2025 - 2035).

Key UK Mobile Wallet Market Trends Highlighted

The growing popularity of smartphones and contactless payment methods is propelling the UK mobile wallet market's notable expansion. Convenience is a key factor driving the market, as many customers prefer to do transactions on their mobile devices.

Furthermore, since consumers want for easy payment options that facilitate speedy and safe transactions, the growth of e-commerce has increased demand for mobile wallets. This change is also being fueled by the UK government's goal for a cashless society and financial institutions' promotion of digital payment systems.

Collaborations between fintech businesses and conventional banking establishments to improve mobile wallet functionality and draw in more users are among the opportunities to be investigated. Smaller local companies may be able to take use of mobile wallets to enhance the customer experience as more UK stores implement mobile payment options.

It is anticipated that this trend of partnerships and integration will speed up growth and provide users with a wider range of services. Recent trends indicate that mobile wallets are adding features like loyalty programs and user incentives to increase user involvement beyond basic purchases.

Consumer confidence in using mobile wallets is increased by raising awareness of security features like biometric authentication and encryption technologies.

Additionally, the market landscape is influenced by younger generations' inclination for digital solutions. The market for mobile wallets is expected to change as the UK works to improve financial services through technology, bringing with it both exciting prospects and challenges.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

UK Mobile Wallet Market Drivers

Increased Adoption of Smartphones and Mobile Technology

The rapid increase in smartphone penetration in the UK is a significant driver of the UK Mobile Wallet Market. According to government reports, smartphone ownership in the UK has surpassed 85% among individuals aged 16 and above.

This notable figure indicates that a substantial portion of the population has access to mobile technology that supports mobile wallets. Consequently, as more consumers engage with smartphones, the likelihood of adopting mobile wallet solutions increases.

Key players in the industry, such as Apple and Google, have made significant investments in Research and Development to enhance their mobile wallet offerings, contributing further to the growth of this sector. Additionally, the UK government has supported digital payment systems through initiatives encouraging cashless transactions, driving greater reliance on technologies like mobile wallets.

Growing E-commerce and Digital Payment Trends

The rise of e-commerce in the UK has greatly influenced the growth of the UK Mobile Wallet Market. An estimated 87% of adults in the UK engaged in online shopping as of the latest statistics from the Office for National Statistics, showcasing a significant shift toward digital spending habits.

This increase in e-commerce activities necessitates secure and efficient payment solutions, with mobile wallets being favored for their convenience and security features. Prominent e-commerce platforms such as Amazon and eBay have integrated mobile wallet payment options, facilitating seamless transactions for consumers and driving further adoption.

Consumer Preference for Contactless Payments

The shift towards contactless payments has accelerated in the UK, bolstered by the COVID-19 pandemic, which led to a heightened focus on hygiene and safety. Statistics from the UK Finance report indicated that contactless payments accounted for 42% of all card transactions in 2020, reflecting a sharp incline from previous years.

This consumer preference for quick and convenient payment methods has caused a surge in mobile wallet adoption, as these wallets typically incorporate contactless technology. Leading banks like Lloyds Banking Group and Barclays have actively participated in promoting mobile wallets among their customers, enhancing the overall market landscape.

UK Mobile Wallet Market Segment Insights

Mobile Wallet Market Mode of Payment Insights

The Mode of Payment segment within the UK Mobile Wallet Market is rapidly evolving, reflecting a transformative shift in consumer behavior and the increasing reliance on digital payment solutions.

Mobile wallets are gaining prominence as convenient and secure alternatives to traditional payment methods, driven by the growing penetration of smartphones and the widespread availability of high-speed internet.

Among the various methods, Near Field Communication (NFC) stands out as a key driver of market growth. NFC technology enables quick transactions by simply tapping the smartphone at a terminal, facilitating a seamless and efficient checkout experience. This method reduces transaction times and enhances customer satisfaction, making it a popular choice among consumers and retailers alike.

Furthermore, as contactless payments continue to gain traction, NFC is likely to dominate a significant portion of the market due to its ease of use and security features, reinforcing consumer confidence in mobile payment solutions.

Another noteworthy method within this segment is Remote Payment, which has become increasingly significant due to the rise of e-commerce and the need for users to make purchases from virtually anywhere.

Remote payment options allow users to complete transactions online or through apps without the physical presence of a payment terminal, fostering a seamless shopping experience. The UK has seen a significant uptick in online shopping, bolstered by the pandemic, which emphasizes the importance of secure and reliable remote payment systems.

As consumers prioritize convenience and flexibility, remote payment methods have become more integral to their payment preferences, and this shift is reflected in the increased popularity of mobile wallet solutions that prioritize such functionalities.

Both NFC and remote payment methods underline the innovative capabilities of the UK Mobile Wallet Market, highlighting a clear trend towards a more digital-oriented economy where speed, convenience, and security are paramount.

With government support for digital payment infrastructure and increasing merchant adoption, the Mode of Payment segment is poised for substantial growth, ultimately reshaping the landscape of how consumers transact in the UK.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Mobile Wallet Market Type Insights

The UK Mobile Wallet Market exhibits diverse segments under the Type category, prominently featuring Proximity and Remote transactions. The overall market is projected to experience significant growth, driven by increasing smartphone penetration and the rising adoption of contactless payment solutions in the UK.

Proximity payments, which enable users to make transactions by simply tapping their devices at payment terminals, have gained traction due to the convenient and swift nature of these transactions. This segment appeals particularly to consumers seeking an efficient purchasing experience, increasingly integrated into retail and transportation services.

On the other hand, Remote payments are becoming essential as more consumers move towards e-commerce and digital services, further fueled by the COVID-19 pandemic's shift towards online shopping. Buyer preferences are pivoting, emphasizing security and ease of use, resulting in the growth of advanced technologies such as biometric authentication and tokenization in both types.

With evolving consumer behavior and technological enhancements, the UK Mobile Wallet Market segmentation continues to expand, presenting opportunities for businesses to innovate and tap into the growing digital economy.

Market growth is supported by favorable regulations, expanding infrastructure, and increasing awareness of contactless transactions, making it a significant player in the evolving payments landscape in the UK.

UK Mobile Wallet Market Key Players and Competitive Insights

The UK Mobile Wallet Market has experienced significant growth in recent years, driven by advancements in technology, increased smartphone penetration, and a shift towards contactless payments.

With consumers increasingly seeking convenience and security in their financial transactions, various companies have entered the space, offering a range of services that cater to both personal and business needs.

Players in this market compete on several fronts, including user experience, transaction security, availability of features, partnerships with retail and service providers, and customer support. As the market continues to evolve, companies are continuously innovating and adapting to changing consumer preferences, thereby intensifying competition in this landscape.

N26 has carved a niche in the UK Mobile Wallet Market through its user-centric design and intuitive app functionality. The company emphasizes simplicity and efficiency, offering users a seamless experience in managing their accounts and performing transactions.

With a robust mobile app that allows for real-time notifications, budgeting tools, and spending insights, N26 coordinates financial management with everyday life, appealing particularly to tech-savvy and younger consumers.

Its strengths lie in its transparent fee structure, instant account opening, and innovative features that attract users looking for convenience and effectiveness in handling their finances through their mobile devices. As a digital bank that operates primarily online, N26's agility enables it to respond rapidly to market demands, solidifying its presence in the competitive UK mobile wallet environment.

Barclays operates as a significant player in the UK Mobile Wallet Market, leveraging its extensive banking experience and established customer base to offer mobile payment solutions that cater to varying consumer needs. The company provides a host of key services, including contactless payments through its mobile banking app and digital wallet solutions.

With a strong focus on security and fraud prevention, Barclays instills confidence in users while adopting the latest technologies to enhance the overall payment experience. Furthermore, the company has engaged in several strategic partnerships and acquisitions that bolster its market position and expand its service offerings.

Barclays’ history of innovation and commitment to customer service underpins its strengths, allowing it to maintain a stronghold in the competitive landscape. Notably, its influence in the UK market is supported by its well-known brand reputation and the trust that consumers associate with its long-standing presence in the financial sector.

Key Companies in the UK Mobile Wallet Market Include

• N26
• American Express
• Samsung
• Revolut
• Apple
• PayPal
• Google
• TransferWise
• Monzo

UK Mobile Wallet Market Developments

With an emphasis on their market dominance, competition, and consumer safety under changing fintech laws, UK regulators, acting through the Financial Conduct Authority and PSR, began a significant investigation of digital wallets like as Apple Pay, Google Pay, and PayPal in July 2024.

Under the new UK digital markets regulations, Apple and Google were granted "strategic market status" by the Competition and Markets Authority by July 2025, allowing for mandatory interoperability and lower app-store fees.

The use of mobile wallets increased earlier in December 2023: 34% of UK people utilized contactless mobile payments each month, and 42% of adults registered for a wallet, indicating a significant move away from cash.A greater integration with open banking was hinted at in March 2024 when Apple introduced a feature that allowed users to examine their bank account balance from within Apple Wallet in the UK.

With more than 60 million users worldwide, Revolut is a British fintech company that acquired its UK banking license by July 2024 and proceeded to extend its wallet services, aiming to introduce NFC tap-to-pay on iPhones by the middle of 2025.

In the meantime, Curve declared in March 2025 that it would introduce a different tap-to-pay wallet on iPhones that works similarly to Apple Pay and is made possible by newly required NFC access. According to late 2024 usage studies, Apple Pay is the most popular among young adults (43%), followed by Google Pay (39%), while Monzo and Revolut trailed at 17% and 15%, respectively.

UK Mobile Wallet Market Segmentation Insights

• Mobile Wallet Market Mode of Payment Outlook
  • NFC
  • Remote Payment
• Mobile Wallet Market Type Outlook
  • Proximity
  • Remote

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	121.9(USD Million)
MARKET SIZE 2024	143.5(USD Million)
MARKET SIZE 2035	721.5(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	15.814% (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	N26, Barclays, Gohenry, American Express, Samsung, Revolut, Apple, PayPal, Square, Lloyds Banking Group, Google, HSBC, TransferWise, Virgin Money, Monzo
SEGMENTS COVERED	Mode of Payment, Type
KEY MARKET OPPORTUNITIES	Growing contactless payment adoption, Rising e-commerce transactions, Increased smartphone penetration, Demand for loyalty programs, Expansion of fintech partnerships
KEY MARKET DYNAMICS	increasing smartphone penetration, growing contactless payments, rising consumer trust, enhanced security features, expanding merchant acceptance
COUNTRIES COVERED	UK