Mobile wallets and BNPL adoption
The growth in mobile wallet usage is a key trend for fintech providers.
Card payments continue to be the dominant method, accounting for 64% of all UK transactions, but mobile wallets are capturing an increasing portion of this volume.
Of the 26.1 billion debit card payments in 2024, 18.9 billion were contactless, a figure boosted by the convenience of mobile payments.
The report notes that of those using mobile payments, 44% use them at least weekly, suggesting a high level of engagement once adopted.
Alongside mobile wallets, Buy Now Pay Later (BNPL) services are becoming more established. Usage has grown from 14% to 25% of UK adults.
Klarna® and similar providers have found a strong foothold, particularly in the fashion sector, which makes up 46% of BNPL transactions.
This growth in alternative credit has direct implications for payment processors and financial service companies that must now consider how to integrate or compete with these popular options.
The average spend of £90 per transaction highlights the role of BNPL in facilitating smaller, more frequent online purchases.
